The International Financial Rating Agency, Global Credit Rating Limited has again confirmed that Sovereign Trust Insurance Plc is set to take on the leadership position in the insurance sector in Nigeria with its recent A- rating. The company commended Sovereign Trust Insurance Plc on its high claims paying ability.
The considerations for the rating amongst others were based on the company’s good mix of business across the risk classes, high profile multi national oil and downstream clients, increased underwriting capacity strengthened by its new capital base and the geographical diversification benefits gained from the merger partners during the recapitalisation process.
Going by the unaudited result for the third quarter, which ended in September 2007, the company recorded a remarkable increase of 70% and 84% over the same period of the last financial year in gross premium and profit before tax respectively. Profit after tax also increased significantly by 89%.
According to the Agency, the solvency and liquidity state of Sovereign Trust Insurance Plc has been quite steady. The international solvency margin increased from 76% in 2005 to 126% in the 2006 financial year. The trend is likely to continue barring any unforeseen variables.
Undoubtedly, the company’s leadership position in the oil and gas downstream sector is without questioning as it continues to be the lead insurer with the major players in the industry. The company has a highly prized general accident book, increasing at a compound annual growth rate of 35%.
Sovereign Trust Insurance Plc is committed to attracting and retaining the best hands in the insurance business in Nigeria. With a rare combination of proven professionals from diverse areas of the Nigerian economy, Sovereign Trust is unarguably the only insurance company in the country with at least five Chartered Insurers as members of the Board.
The company aims at becoming one of the top five in the insurance sector within the shortest possible time. To achieve this, conscious effort is being made to expand the branch network nationwide to afford Nigerians qualitative insurance products and services.