STI begins N4.17 billion rights issue

Sovereign Trust Insurance Plc has announced the opening of rights issues for existing shareholders, which has commenced since June 24, 2019, and will run through July 31, 2019.

The Head of Corporate Communications and Brand Management of the underwriting firm, Segun Bankole, who spoke to The Guardian over the weekend, said that the company is offering 4.17 billion ordinary shares of 50 kobo each at 50 kobo per share on the basis of one new ordinary share for every two ordinary shares held as at the close of register on Tuesday, January 15, 2019.

Similarly, the company has enjoined all Shareholders of the company to take advantage of this unique opportunity by maximally taking up their rights in the Rights Issue with a view to increasing their stake in the company.

and as well grow their wealth in the very near future as the company is poised to moving on to the next phase of its growth stage.

The company’s Managing Director/Chief Executive Officer, Olaotan Soyinka, said the management has set a growth agenda, which is aimed at positioning the underwriting firm as one of the top five in the insurance industry in Nigeria.

“In achieving this aspiration, we have identified that a very robust capital base is critical to the success of the set agenda; hence the need to call on our Shareholders to fully exercise their rights by subscribing fully to the Rights Issue and ultimately grow their investments in the company”, he said.

He said that Sovereign Trust is working assiduously towards being one of the most preferred Insurance companies in the country for people to do business with, invest in as well as be the choice Employer of Labour.

Judging by the results of the performance of the company in 2018, it leaves no one in doubt that the company is set for the path of profitability and quite interesting to note that the company recorded a marked positive shift from what was recorded in the financial year of 2017 when compared to the 2018 financial year performance.

The company recorded a Gross Premium Written of N10.5billion representing a 23 per cent increase over the N8.5 billion recorded in 2017.

The Net premium income equally grew by 31 per cent to N5.5 billion over the sum of N3.85billion recorded in the corresponding year.

In the same vein, the company recorded a Profit Before Tax of N540 million as against N202 million recorded in year 2017 representing over 167 per cent increase.

Profit after tax also stood at N344 million, a 118 per cent increase when compared with the sum of N158 million recorded in 2017. Consequently, the Return on Capital Employed recorded a positive performance of 9.29 per cent as against 1.87 per cent achieved in the corresponding year of 2017.