Insurance World

Sovereign Trust Boosts Profit By 32% To N662m, Pays N1.8bn As Claims

BY NKECHI NAECHE-ESEZOBOR–Sovereign Trust Insurance Plc, a major player in Nigeria’s insurance sector has released its  interim financial statement for the period ended 30 June 2021.

The second quarter performance shows that the underwriting firm is very much on course with meeting the aspirations of her various Stakeholders in the days ahead. 

Profit Before Tax for the second quarter rose from N501million  in 2020 to N662million in the corresponding period of 2021, with a 32% growth rate .

Profit After Tax was not left out as it  grew by 16% from N448million in the second quarter of 2020 to N518million in 2021.

The company’s gross premium written appreciated to N7.8billion compared with N6.03billion recorded at the corresponding period of 2020, representing 30% growth rate.

Also, net premium income grew from N2.4billion in the second quarter of 2020 to N2.8billion in the same period of 2021 amounting to a growth rate of 16%.

Underwriting Firm grew the portfolio of its business, it also recorded a slight increase in the claims payout in the second quarter of 2021 having paid a total sum of N1.8billion  compared to the sum of N1.4billion that was paid as claims in the corresponding period of 2020, representing a 26% increase in claims payout.

This also underscores the Company’s commitment to settling genuine claims as and when due.

Net Claims expense in the second quarter of 2021 grew by 9% to N1.074billion  compared to the net claims expense of N985million in the second quarter of 2020.   

The total equity of the Company in the second quarter of 2021 also grew by 11% from N8.1billion  in the corresponding period of 2020 to N9.059billion in Q2 of 2021 while  total assets also increased from N13.1billion  in the second quarter of 2020 to N13.8billion  in the corresponding period of 2021 with a marginal growth rate of 5%.

Earnings per Share rose from 3.95kobo in the second quarter of 2020 to 4.57kobo in the second quarter of 2021 while net assets per share also increased from 72kobo in Q2 2020 to 79kobo in the corresponding period of 2021.

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