Sovereign Trust promises bright future for shareholders

Board and management of Sovereign Trust Insurance plc is optimistic that as the current economic recession in Nigeria abate with clear signs of recovery, businesses including insurance will begin to pick up.

The company believes that the future of insurance business in Nigeria is bright and it is poised to latch on to the availing opportunities that the market will bring to bear in delighting its Shareholders and Customers in the years ahead.

According to them, shareholders of the company can begin to look forward to a brighter future ahead as the murky economic situation that pervaded operations of most corporate organizations in the country is beginning to show signs of recovery.

Having secured the approval of the National Insurance Commission, (NAICOM) for its 2016 Audited Financial Statements, the management said that despite the harsh operating environment during the year, the underwriting firm grew its balance sheet size from N9.2 billion in 2015 to N9.5 billion in 2016.

Although there was a downward shift in the gross premium written when compared to the same period ended December 31, 2015, the company ended the year 2016, with a gross premium income of N6.3 billion as against N7.1 billion in 2015, signaling about N732 million shortfalls in revenue.

However, the company showed considerable signs of resilience in some aspects of its operations as its investment income grew from N214 million in 2015, to N281 million in 2016”, the company said in a statement.

As a result of the company’s effective claims administration, its claims payment in 2016, reduced from N1.5 billion in 2015, to N1.4 billion in the year under review.  The Total comprehensive income for the year net of tax, rose from N19m in 2015, to N186m in 2016. Its Profit after tax however, reduced from N557m in 2015, to N23m in the year under review.

Modestus  Anaesoronye