Sovereign Trust Insurance profit fell by 95% in 2016

Nigerian Enamelware

For the full year 2016, Sovereign Trust Insurance Plc net profit dipped by 95% to NGN23.5 million compared to NGN557.8 million recorded in the financial year 2015. Meanwhile, it recorded NGN6.3 billion gross premium written in 2016 against NGN7.1 billion recorded in 2015.

Sovereign Trust Insurance said it recorded NGN44.9 million as profit before tax in the full year 2016 against NGN430.4 million recorded in the year 2015. Gross premium income came in at NGN6.3 billion against NGN7.1 billion recorded in 2015.

Net premium income reduced to NGN6.7 billion in 2016 compared to NGN6.9 billion recorded in 2015, while its reinsurance expenses also dropped to NGN2.8 billion from NGN3.0 billion reported in the fiscal year 2016. It is obvious that the difference in the expenses didn’t have much impact as it net premium income stood at NGN3.9 billion same as recorded in 2015.

Net underwriting income for the period under review was NGN4.2 billion in contrast to NGN4.3 billion posted in the previous year while its underwriting profit stood at NGN1.6 billion against NGN1.6 billion reported in the year before.

Total assets for the year increased to NGN9.5 billion from NGN9.2 billion acquired in 2015 while its total liabilities stood at NGN4.2 billion.

Company Profile

Sovereign Trust Insurance Plc commenced business in January 1995 following the restructuring and recapitalization of the then Grand Union assurances Limited. We operate currently through a network of branches Nationwide with our Head Office on 17, Adetokunbo Ademola Street, VI, Lagos.

The company is licensed as an insurer by the Federal Government with authority to underwrite all Classes of Non-Life business. Currently our authorized share capital is N5.25Billion divided into 10.5 billion units of 50 kobo per share. We have a fully paid-up capital and Shareholders’ funds of over N3.4 Billion. The ownership of the company is made up of diverse shareholders from different walks of life.