Sovereign Trust improves Q1 PAT by 43% year-on-year

By Asishana John

Sovereign Trust Insurance has improved its profit after tax, for the first quarter of 2021 by 43 percent. This was contained in the financial statement made available on the Nigerian Exchange Limited (NGX).

According to the financial report, which shows a great improvement compared to last year’s first quarter, the PAT recorded for the period under review was valued at N392 million, which represents a N118 million increase from the same period last year.

While the gross premiums written (GPW) grew during the first quarter of 2021 reaching N5.4 billion compared to the N3.6 billion recorded the previous year, the gross premium income (GPI) was valued at N5.2 billion as against the N3.6 billion recorded during the frst quarter of last year.

Net premiums earned and net underwriting income was valued at N1.9 billion and N2.5 billion in the first quarter of the year under review.

This represents an increase compared to the N1.6 billion and N2 billion recorded in the first three months of 2020.

Similarly, investment incomes, at N115 million, depicts a creeping rise from the N112 million recorded last year. Despite the signifcant improvement in income, however, the reinsurance expenses weighed heavily on the income level as it (reinsurance expenses) amounted to N3.2 billion compared to the same period of last year, which posted N2 billion.

In the same vein, the claim expenses and underwriting expenses in the first quarter this year hit N965 million and N681 million respectively.

Despite the lingering effect of COVID-19, Sovereign Trust Insurance, which recorded an increase in PAT by 37 percent for the full year 2020 – amounting to N687 million compared to the amount recorded for the previous year – has continued in the path to deliver well, as seen in the first quarter report.