Sovereign Trust grows profit by 167 per cent

Sovereign Trust insurance Plc has  said that despite the challenging economic environment in 2018, the company recorded brilliant performance when compared with 2017. The Managing Director and Chief Executive Officer of the underwriting company, Olaotan Soyinka, said the development is a very heart-warming one, considering the level of work that was put in place in 2018. 
 
“It is quite interesting to note that the company recorded a phenomenal leap of 167 percent in its Profit Before Tax totaling N540 million, against N202 million recorded in year 2017.He added that the gross premium written in 2018 stood at N10.5 billion compared with N8.5 billion in 2018, representing a 23 per cent increase. ‬
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Another outstanding highlight of the 2018 accounts, which could be described as very encouraging, is the rise in the company’s profit after tax to N344 million, against N157 million in 2017, representing 118 per cent increase.‬As the company grew its balance sheet in 2018, so did it also increase its claims payout?  In 2018, a total of N4.2 billion was paid as claims against N1.9 billion that was paid in 2017. 

Net claims expense grew to N1.7 billion from N1.3 billion in 2017, underscoring the company’s claims paying ability, resulting in a 37% net claims expense, while total assets also rose by a marginal five per cent to N11.3 billion in 2018 from N10.8 billion in 2017. He said the management of the company is really committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike.“These performance levels are a confirmation of the management’s determination to effectively and strategically position the company as one of the leading insurance companies in the country while at the same time propel the company to a profitable height for shareholders’ delight,” he said.