Sovereign Trust Insurance Plc has again maintained a very impressive half year performance going by the half year unaudited financial result which was recently made available to the public by the Underwriting Firm.
With a resolve to being one of the leading players in the Insurance Industry in the country, the organization has again posted a positive financial performance in the second quarter of 2017 as it bettered its performance recorded in the same period of 2016. The half year performance shows that Sovereign Trust Insurance Plc is right on track in wanting to delight her shareholders and other stakeholders alike as the year and future of the company progresses.
The total Gross premium written grew from N3.7b in the second quarter of 2016 to N6.1b representing an increase of N2.4b and a growth rate of 64% in the current financial year. Likewise, the net premium income grew from N2.3b in the second quarter of 2016 to N2.8b in the same period of 2017 amounting to a growth rate of 27%.
The underwriting profit rose from N1.114b to N1.139b representing a growth rate of 2% while investment income also grew by 73% from N140m in 2016 to N243m in 2017 Q2. The profit before tax had a growth rate of 57.5% having increased from N400m in 2016 of the same period under review to N630m in 2017 while profit after tax also grew from N373m in 2016 to N588m in the same period of 2017 with a growth rate of 57.6%.
A very heartwarming development is the fact that the company’s Management Expenses still remained low like it was in the first quarter of the year. Management Expenses in the second quarter of 2017 was N713m as against N762m in the same period of 2016, representing a 6% reduction rate. Indeed, the Management Team is committed to reducing cost of operations as much as possible.
Interestingly, the company’s promise of wanting to create an exceptional value to its numerous shareholders spread across the country and beyond is beginning to look very hopeful and one can only hold on to that glimmer of hope as the Underwriting Firm forges ahead. The second quarter unaudited financial report clearly indicates that Sovereign Trust Insurance Plc is one organization to reckon with when it comes to insurance business in Nigeria. This goes a long way to confirm the viability and profitability of the company. No doubt, better days are here for this prolific Underwriting Organization.