BY NKECHI NAECHE-ESEZOBOR--Nigeria’s top insurer, Sovereign Trust Insurance Plc has continued to show consistent rise in its profitability after it posted another significant first quarter result for 2021.
According to the insurer in a statement made available to BusinessToday Online that Profit Before Tax of the Company grew from N306mIllini in Q1 2020 to N510million in the corresponding period of 2021, with a 66% growth rate.
The company’s Profit After Tax was not left out as it grew by 43% from N274million in the first quarter of 2020 to N392m in the first quarter of 2021.
The total Gross premium written grew from N3.6billion in the first quarter of 2020 to N5.3b representing an increase of N1.7bIllion and a growth rate of 46% in the current financial year. In like manner, the net premium income grew from N1.6billion in the first quarter of 2020 to N1.9billion in the same period of 2021 amounting to a growth rate of 18%.
Understandably, as the Underwriting Firm grew the portfolio of its business, it also recorded a slight increase in the claims payout in the first quarter of 2021 having paid a total sum of N1.2bIllion compared to the sum of N1billion that was paid as claims in the corresponding period of 2020, representing a 17% increase in claims payout. This also underscores the Company’s commitment to settling genuine claims as and when due. Net Claims expense in the first quarter of 2021 grew by 8% to N965million compared to the net claims expense of N896million in the first quarter of 2020.
The total equity of the Company in the first quarter of 2021 also grew by 12% from N8billion in the corresponding period of 2020 to N9b in Q1 of 2021 while the Total Assets also increased from N13.4b in the first quarter of 2020 to N14b in the corresponding period of 2021 with a marginal growth rate of 5%.
Earnings per Share rose from 3.29kobo in the first quarter of 2020 to 3.45kobo in the first quarter of 2021 while net assets also increased from 71kobo in Q1 2020 to 79kobo in the corresponding period of 2021.
