Sovereign Trust Insurance announces N510m profit in Q1

By Asishana John

Sovereign Trust Insurance Plc has announced a Profit Before Tax (PBT) of N510 million for the first quarter of 2021.

A statement made available by the insurer on Tuesday in Lagos indicates that the figure represents 66 per cent improvement over N306 million recorded in Q1 2020.

The Insurance company said that its Profit After Tax (PAT) grew by 43 per cent from N274 million in the first quarter of 2020 to N392 million in the first quarter of 2021.

It said that its total gross premium written grew from N3.6 billion in the first quarter of 2020 to N5.3 billion, which is an increase of N1.7 bIllion and a growth rate of 46 per cent in the current financial year.

The firm stated that its net premium income grew from N1.6billion in the first quarter of 2020 to N1.9 billion in the same period of 2021, amounting to a growth rate of 18 per cent.

“The company also grew its business portfolio just as it recorded a slight increase in the claims payout in the first quarter of 2021, with a total sum payment of N1.2 bIllion compared to N1billion paid in the corresponding period of 2020, “ it said.

According to the insurer, the figure represents a 17 per cent increase in claims payout.

It said net claims expense in the first quarter of 2021 grew by eight per cent to N965million, compared to the net claims expense of N896 million recorded in the first quarter of 2020.

The company stated that its total assets also increased from N13.4 billion in the first quarter of 2020 to N14 billion in the corresponding period of 2021 with a marginal growth rate of 5 per cent.

“Earnings per Share rose from 3.29 kobo in the first quarter of 2020 to 3.45 kobo in the first quarter of 2021, while net assets also increased from 71 kobo in Q1 2020 to 79 kobo in the corresponding period of 2021,” the insurer said.