- Grow Profit By 118%, Pays N4.2 billion As Claims in FY18
L-R: Executive Director, Sovereign Trust Insurance Plc, Ugochi Odemelam; Company Secretary, (Citipoint Chambers), Yetunde Martins; Chairman, Oluseun Ajayi and Managing Director/CEO, Olaotan Soyinka, at the event in Lagos.
BY NKECHI NAECHE—-The Board of Directors of Sovereign Trust Insurance Plc on Thursday assured its shareholders that its mandate to scale up the company’s capital base is already at an advanced stage.
Chairman of the company, Oluseun Ajayi disclosed this during the company’s 24th Annual General Meeting held in Lagos that the company’s programme for recapitalization is already on course with ongoing issuance of Rights to existing shareholders of the company.
Cross section of shareholders at the event held today in Lagos.
He added that with the schedule, the company will be issuing a total of 4,170,411,648 ordinary shares to its esteemed shareholders which he said is expected to be finalized by the third quarter of this year.
The board of Directors at the event.
While noting that the capital raising options as advised by the company’s financial advisor will be considered in the course of the year to ensure the company is set on a very solid and competitive platform in the industry
He assured that the new minimum wage bill recently passed and accented to by the Federal Government will to a great extent increase demand and supplies in the economy, adding that “insurance service is expected to benefit by the law in terms of premium generation as disposable income improves.”
Speaking further he said in the course of the year, the company will introduce affordable and bespoke products expected to deepen its retail and product lines.
“Our company is well abreast of the happenings in the economy as well as the industry and has proactively followed up on its plan to ensure its target to be amongst the top five by year 2022 is achieved. This programme is tagged T522.
“We believe that the changes in our business environment present uncommon opportunities for operators. We shall continue to deploy several initiatives and strategies to address any industry challenges while harnessing the inherent opportunities.”
On its financial performance he said the company recorded Gross Premium Written (GPW) of N10.5 billion representing 23 per cent increase over the N8.5 billion recorded in 2017.
Net premium income equally grew by 31 per cent to N5.5 billion over N3.85 billion achieved in 2017, while profit before tax of N540 million rose by 167 percent as against N202 million achieved in 2017.
Profit after tax also appreciated by 118 percent to stand at N344 million, when compared with N158 million recorded in the previous year
He said the return on capital employed (ROCE) recorded a positive performance of 2.9 per cent as against 1.87 per cent achieved in 2017 and the earning per improved by 118 per cent from 1.89 kobo in 2017 to 4.13 kobo in 2018.
The chairman maintained that the firm’s balance sheet improved as the total assets rose from N10.8 billion to N11.3 billion and shareholders’ fund went up slightly by six per cent from N5.5 billion in 2017 to N5.8 billion in 2018.