Sovereign Trust Insurance PAT up 37% to N687m in 2020

Olaotan Soyinka

Sovereign Trust Insurance Plc (the Company) said it recorded a Profit After Tax (PAT) of N687 million in 2020, which it considered a commendable performance when compared with the company’s performance in 2019.

A statement by its Deputy General Manager/Head, Sales & Corporate Communications, Olusegun Bankole, noted that in spite of the challenging operating environment that characterized operations of most businesses in the country in 2020 which was largely due to the effects of the COVID-19 pandemic and the seeming lull in the insurance sector in the year, the firm was able to achieve the feat.

The Managing Director and Chief Executive Officer of the underwriting firm, Olaotan Soyinka, while commenting on the company’s performance, the statement state, said the development is an encouraging one considering the level of work that was done in 2020.

He stated that it is quite interesting to note that the Company recorded a leap of 37 per cent in its Profit After Tax of N687 million as against N503 million recorded in the year 2019.

The Gross Premium Written in 2020, he said stood at N11.1billion compared to the N10.8 billion written in 2019, representing a marginal increase of 2 per cent, adding that another interesting highlight of the 2020 accounts which could be described as heart-warming is the rise in the Company’s Total Assets from N13.4 billion to N14.8 billion in 2020 representing 11 per cent increase.

As the Company grew its balance sheet in 2020, so did it also increase its claims payout. In 2020, a total of N3.48billion was paid as claims against N2.2billion that was paid in 2019. This in a way underscores the Company’s claims-paying ability coupled with the company’s renewed attention at delighting our customers. The net premium income also grew by 10% from N5.9b to N6.5b in 2020, he submitted.

The Managing Director said the management of the Company is committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike. “These performance levels are a confirmation of the management’s determination to effectively and strategically position the Company as one of the leading insurance companies in the country while at the same time, propel the Company to a profitable height for shareholders’ delight in the years ahead.”