Sovereign Trust Insurance Announces 66% Growth in Profit Before Tax In First Quarter 2021…to hold AGM May 27
Sovereign Trust Insurance Plc (the Company) said it recorded a 66% growth in Profit Before Tax In First Quarter of 2021.
With this the firm has continued to show consistent rise in its profitability after it posted another significant first quarter result for 2021.
The First quarter performance shows that the Underwriting Firm is very much on course with meeting the aspirations of her various Stakeholders in the days ahead.
The total Gross premium written grew from N3.6 billion in the first quarter of 2020 to N5.3 billion representing an increase of N1.7 billion and a growth rate of 46% in the current financial year. In like manner, the net premium income grew from N1.6 billion in the first quarter of 2020 to N1.9 billion in the same period of 2021 amounting to a growth rate of 18%.
According to the statement by the company’s spokesperson, who is also a Deputy General Manager, Sales, Mr. Segun Bankole, a very significant leap was also recorded in the Profit Before Tax of the Company from N306 million in the first quarter of 2020 to N510 million in the corresponding period of 2021, with a 66% growth rate while Profit After Tax grew by 43% from N274 million in the first quarter of 2020 to N392 million in the first quarter of 2021.”
“Understandably,” the statement stated, “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 N1.2 billion compared to the sum of N1 billion 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 N965 million compared to the net claims expense of N896 million in the first quarter of 2020.
The total equity of the Company in the first quarter of 2021 also grew by 12% from N8 billion in the corresponding period of 2020 to N9 billion in Q1 of 2021 while the Total Assets also increased from N13.4 billion in the first quarter of 2020 to N14 billion in the corresponding period of 2021 with a marginal growth rate of 5%.
Earnings per Share rose from 3.29 kobo in the first quarter of 2020 to 3.45 kobo in the first quarter of 2021 while net assets also increased from 71 kobo in Q1 2020 to 79 kobo in the corresponding period of 2021.
