Sovereign Trust Insurance records 48% growth in profit

Sovereign Trust Insurance (STI) Plc recorded profit after income tax of N746.29 million for the financial year ended Dec. 31, 2020.

The company said this in its unaudited financial statements released on the floor of the Nigerian Stock Exchange. The result showed that the profit increased by 48 per cent when compared with N503.38 million achieved in the corresponding period of 2019.

Also, gross premium stood at N11.12 billion when compared with N10.88 billion posted in the comparative period of 2019.

Recall that STI in the corresponding period of 2019 recorded three percent growth in its gross premium written amounting to N10.8 billion from N10.5 billion recorded in 2018.

The net premium income of the firm equally grew by 18 per cent to N5.9 billion from N5.0 billion achieved in 2018.

Also, profit before tax rose to N819 million as against N541million recorded in year 2018, representing an increase of 51 per cent.

Profit after tax also stood at N503 million, a 46 per cent increase when compared with the sum of N344 million recorded in 2018.

Consequently, the Return on Capital Employed recorded a positive performance of 9.2 per cent as against 8.0 per cent achieved in the corresponding period of 2018.

The company’s investment income appreciated by 20.8 per cent to N469 million from N388 million in 2018.

Mr Olaotan Soyinka, the company’s Managing Director /Chief Executive Officer, attributed its performance to the commitment shown by its staff and the dedication of the management to ensure that the firm takes its place of pride in the Industry.