Capital

Sovereign Trust Insurance Hopes To Surpass Q3 2020 Profit By 17.58 % In Q4

Mr. Olaotan Soyinka, MD/CEO STI

BY NKECHI NAECHE-ESEZOBOR-Sovereign trust insurance Plc, a major player in Nigeria’s insurance sector has released its earnings forecast for the fourth quarter ended 31st December, 2020 with a profit before tax of N1.344billion as against N1.143 billion projected in Q3, 2020, representing an increase of 17.58%.

The forecast released on the floor of the Nigerian Stock Exchange to investing public and dealing members also showed an improvement in gross premum written of N12.220billion over N10.387 billion announced for Q3 2020.

The company also projected a net underwriting income N7.271 billion and net claims of N1.667 billion in Q4 2020.

The insurer further said it expects underwriting profit to increase to N3.028billion in same period of Q4 2020.

The company had in Q3 2020 forecast a profit before tax of N1.143 billion when compared with N819 million projected in same period of 2019 financial year.
Gross premium written for Q3 2020 was N10.387 billion compare with N10.8 billion in 2019.

In its audited financial year 2019, the company posted Gross Premium Written of N10.8billion representing a 3% increase over the N10.5billion recorded in 2018.
The net premium Income equally grew by 18% to N5.9billion over the sum of N5.0billion recorded in the corresponding year.
In the same vein, the company recorded a Profit Before Tax of N819million as against N541million recorded in year 2018 representing over 52% increase.

Profit after tax also stood at N503million, a 46% increase when compared with the sum of N344million recorded in 2018. Consequently, the Return on Capital Employed (ROCE) recorded a positive performance of 9.2% as against 8.0% achieved in the corresponding year of 2018.

Similarly, the company’s Investment income rose by 20.8% from N388million in 2019 to N469million in 2018.

The size and quality of the balance sheet equally improved as total assets rose from N11.3billion to N13.4billion representing a 19% increase while earning per share improved by 42% from 4.13kobo to 5.86kobo.

Sovereign trust will on the 22nd of October, 2020 hold its 25th virtual annual general meeting in accordance with the covid-19 pandemic rules stipulated by the feeders government.

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