Highlighting Sovereign Trust Insurance PLC’s 30 Years Of Innovation And Commitment To National Prosperity
Managing Director/CEO, Sovereign Trust Insurance,Mr. Olaotan Soyinka
EDET UDOH
“Success isn’t always about greatness. It’s about consistency. Consistent hard work leads to success. Greatness will come.” —Dwayne Johnson.
The above quote by Dwayne Douglas Johnson, an American actor, professional wrestler, and businessman, typified Sovereign Trust Insurance PLC’s 30 years journey as a Nigerian business entity.
When Sovereign Insurance Plc was established in January 1995, nobody knew what it would become, but through dint of hard work, commitment to innovation and professionalism, the Company has grown to become a shining star in Nigeria’s financial ecosystem, contributing significantly to the nation’s growth.
Sovereign Trust commenced business in January 1995 following the restructuring and recapitalization of the then Grand Union Assurances Limited. Today the Company is operating through a nationwide network of branches with Head Office on 17, Adetokunbo Ademola Street, Victoria Island, Lagos.
The company is licensed as an insurer by the Federal Government with the authority to underwrite all Classes of Non-Life business. Currently, the company’s issued share capital is 14.23 billion units and a fully paid-up capital of N7.11 billion and asset base is also over N22.8 billion .
The ownership of the company is made up of diverse shareholders from a wide range of individuals and institutional investors with a robust Board of Directors of distinguished personalities who have contributed their wealth of experience and professionalism in nurturing the Company to its present status.
Over the years, the underwriting firm has carved a niche to itself in various ways on how to reach out to the people to deliver value to them not only by providing insurance solutions but to improve their livelihood. One of the tools the company is using to drive this is the Corporate Social Responsibility (CSR).
As part of its CSR aimed at improving the lives of the people of the community it operates in order to enhance their prosperity level, the Company has supported and empowered various associations, schools, orphanage homes, women and youths among others.
In 2016, the Company extended its CSR initiative to a Lagos-based Non-Governmental Organization, Teenage Life on a partnership aimed at strengthening youth development in the country. The initiative is centred on educating the youths in the areas of governance, economic empowerment and social infrastructure development.
Jessica John Braimah, coordinator of Teenage Life, said the role of the youths is very critical to the growth and advancement of any nation which explains why special attention is given to youth mentorship in her organization.
Braimah who commended the commitment of Sovereign Trust Insurance in promoting youth mentorship in the country through the various programmes that the company have continued to support over the years appealed to other corporate organizations to get more involved in youth administration issues in promoting a better society.
“The intervention of Sovereign Trust Insurance Plc in supporting our ‘Life Encounters’ radio programme on a syndicated basis across the country testifies to the affirmation of the brand as a very responsive and trusted partner that can be relied upon at any given point in time. I am particularly grateful to the Management of Sovereign Trust Insurance Plc for their unflinching support of our programmes over the years and I hope to see more corporate organizations emulate such novel initiatives in finding a voice for our youths in the country,” she envisaged.
In 2022, Sovereign Trust Insurance Plc, through its CSR intervention initiative, supported the world of Performing Arts in Nigeria, when it collaborated with Lydar Productions on the production of the musical stage play titled, “Love and Its Other Sides” which was the premiere on February 19 and run through February 27, 2022, at Terra Kulture Arena in Victoria Island, Lagos.
According to the Playwright and Producer of the Musical, Lanre Dele Abrahams, “Love and its other sides is a musical love sojourn, a throwback of love experiences over the decades. In other words, the Play explores love stories that were created before the notties generation.
The story was modelled around tales of love in the late 70s, 80s and 90s. The experience is delivered with heavy music and dance in a Western/Broadway musical style. The music is that which will appeal to the audience; music that tell the stories themselves and brings back nostalgic feelings.”
For Sovereign Trust, the musical play allows the organization to tap into the so-called ‘Love Season’ which is embedded in Valentine’s Day in February where lovers all over the world express romantic pleasantries in different forms and shades with the exchange of gifts and love adulations in creative manners and styles.
Sovereign Trust Insurance Plc in conjunction with Sovereign Finance Limited, in 2023, took its CSR intervention initiative to the world of Performing Arts and Jazz night, in collaboration with the Lasgidi Art Exhibition.
The event which took place at the Lagos Motor Boat Club on Awolowo Road, Ikoyi Lagos, had in attendance Captains of Industries and dignitaries from all walks of life.
The Chairman of Sovereign Trust Insurance Plc, Mr Oluseun O. Ajayi and the Managing Director/CEO of the Underwriting Firm, Olaotan Soyinka, were among the personalities who graced the event.
As part of the Company’s CSR activities to mark the 2024 Valentine’s Day, Sovereign Trust Insurance distributed items such as work gloves, water bottles and takeaway packs in celebrating the Day with members of the Lagos Waste Management Authority along the axis of Falomo Bridge, Bourdillon Road, Lekki Phase 1, Eti-Osa, Osborne Road, Ozumba Mbadiwe Road, and Adetokunbo Ademola Street in the metropolis.
The gesture was in recognition of the important role the Highway Managers play in ensuring that the city of Lagos and all the highways are kept clean while making it motorable for vehicle owners and other commuters in the State.
The Underwriting firm used the occasion to appreciate and recognize the essence of dignity in labour.
The Managing Director/CEO of Sovereign Trust Insurance Plc, Olaotan Soyinka, speaking at the occasion said “this initiative is not just about gifts, it is about recognizing the essential role these men and women play in our community.
Since 2012, Sovereign Trust has consistently maintained the sponsorship of the Open Golf Tournament in the ancient city of Ibadan, Oyo State which has become a yearly event attracting professional golfers across the country at the Amateur and Professional levels in the male and female categories to come together and compete.
This gesture is part of the Company’s ways of giving back to society through different sporting and recreational platforms in reinforcing its corporate social responsibility stance in line with its corporate philosophy. The Company has given succor to many less privileged individuals in various orphanages in the country. It has also donated teaching aids including text books to many secondary and tertiary institutions in support of educational development in Nigeria.
Over the years, the Company has shown its commitment to customer satisfaction and people’s prosperity evident by its prompt claims resolution as contained in its first half of 2024 claim report, showcasing its dedication to serving customers with efficiency and reliability.
The underwriting firm in the first half of the year 2024 paid a total claim amounting to N1,906,699,233.35 (one billion, nine hundred and six million, six hundred and ninety-nine thousand, two hundred and thirty-three naira and thirty-five kobo), covering 1455 claims spread across various policies from the different branches across the country.
The summary of the report of claims paid in the first half shows that Fire policies have the highest figure of N931 million with Motor claims ranking second with a sum of N416 million, General Accident with a sum of N254 million, Marine and Aviation with a sum of N218 million, Engineering with a sum of N65 million followed by oil and gas claims with a sum of N9.6 million and finally Energy with a sum of N584,000 million, making up the total claims paid of N1.9b in the first half of the year.
Sovereign Trust Insurance Plc grew profit by 180% year on year in the third quarter of financial year 2024, contained in its unaudited report for nine months of the year. The insurance company posted N11.496 billion as net income at the end of the nine-month 2024 earnings period, as against N535.349 million it recorded in the comparable period in 2023.
The improved bottom line was made possible by strong growth in insurance revenue. In the review period, insurance revenue surged by 98% year on year to settle at N33.41 billion, from N16.838 billion in the comparable period in 2023.
Insurance services expenses for the period grew by 72% year on year to settle at N10.921 billion, from N6.356 billion in the comparable period in 2023. Its net expenses from reinsurance contracts spiked by 132% year on year to NN19.285 billion at the end of nine-month of financial year 2024.
At the end of the third quarter of 2024, Sovereign Trust Insurance achieved 47% year-on-year growth in insurance services results for the period, which settled at N3.204 billion from N2.175 billion.
The company’s investment return surged by 69% year on year to N807 million from about N477 million. This helped to reduce the negative effects of hefty net finance costs on earnings per share. In the period, Sovereign Trust Insurance Plc reported that its net finance costs grew by N486% year on year to N110.917 million, reversing previous net finance income posted in the equivalent period in 2023.
The underwriting firm did not only pay the claim amounts but also made regular follow-up calls to ensure the customers are left satisfied.
Many policyholders who were beneficiaries of one claim or the other gave complimentary remarks about the underwriting firm with the way their claims were treated in a timely and professional manner.
The underwriting firm continues to maintain its standard of excellence; positioning itself to be accessible to all policyholders by operating from multiple locations in Lagos and other major cities in Nigeria, making it much easier for policyholders to submit claim complaints, receive verification of claims and receive reimbursement for their loss.
In keeping to the philosophy of its Brand as a reputable corporate entity in the insurance landscape in the country, the company has reaffirmed its resolve to ensure that the positive image of the brand is not compromised in any way underscoring claims payment as the true testament of strength and capacity for any insurance company.
Chairman, Sovereign Trust Insurance, Oluseun Olabode Ajayi
Commenting on the company’s claims payment policy, the Managing Director/CEO of the firm, Mr. Olaotan Soyinka said: “Our commitment to satisfying our customers remains unwavering and unshakeable. We understand the importance of swift claims resolution and are proud to provide financial support when our customers need it the most especially in this trying period when a lot of insureds see insurance as the last resort of succour when the unplanned happens.”
International Rating
In 2021, the company moved from A- rating to A rating based on the organization’s new financial position and stable outlook from a statutory solvency perspective.
As a result of the continued success over the years, the company’s performance ranked among the top players in the insurance industry in the country.
From 2007 up to year 2021, the South African-based Rating organization, Global Credit Rating, (GCR), had consistently rated Company A- in attestation of the Company’s high claims-paying ability in the insurance industry. The considerations for the rating amongst others were based on the company’s sizable capital base, sound internal capital generation, healthy investment returns, foreign exchange gains, and a strong liquidity profile backed by a conservative assets allocation strategy. Sovereign Trust Insurance Plc continues to be the lead underwriter for most of the major oil and gas projects in Nigeria.
Reinsurance arrangement
The Company is backed-up with a robust reinsurance treaties arrangement with reputable reinsurance companies to enable it to accommodate risks with high sums insured and to provide the Company with the necessary support in the event of large claims. The treaties were arranged by a consortium of reinsurance Brokers led by United African Insurance Brokers Limited, Perth Re and CICA- Re.
These treaties were placed with a consortium of reputable reinsurance companies locally and overseas including Markel Lloyd’s Syndicate MKL 3000, The Hartford Lloyd Syndicate HIG 1221, Thomas Miller Specialty, Argenta Lloyd’s Syndicate ARG 2121, Antares Lloyd’s Syndicate AUL 1274, Korean Re A, FBS Re, NCA Reinsurance Company, Abidjan, ZEP-Re (PTA Reinsurance Company), Continental Reinsurance Plc, Lagos, Waica Reinsurance Pool, Lagos, Nigeria Reinsurance Corporation, Lagos, Aveni Reinsurance Company, Abidjan and CICA Reinsurance Company, Lome.
Awards and Honours
In recognition of the outstanding contributions to the growth of the country’s economy in various areas, the Company and its leadership have received commendations, awards and laurels from various institutions and organizations in the country. Some of the awards include the Most Outstanding Auto Insurance Company of The Year 2024 Award, Best Digital Innovation Insurance Company of The Year 2024, Company With Best Customer Care Award 2024, Social Responsibility Company of The Year 2014 Award, Most Innovative Retail Brand Award 2018, CITN Pinnacle Award 2024, Texem’s Award 2024, Diamond Award from Ogun State Government, just to mention a few.
Speaking at the Company’s 29th Annual General Meeting (AGM) last year, the Chairman of the Company, Mr. Oluseun Ajayi, commended the company’s performance in sustaining growth momentum even in the face of the challenging business environment.
According to him, “It was indeed a challenging year for many businesses, but the fundamentals of our company are strong, and this is buttressed by our capacity to remain profitable despite the harsh economic conditions prevailing in the operating environment.
“With this result, we remain a profitable brand. We will continue to re-engineer our strategy in line with current realities and will not rest on our oars but continue to improve on our performance.”
Speaking on the industry’s future outlook, he said: “Following a change in administration in 2023, Nigeria stands at a pivotal point with a unique opportunity to return to a sustainable and inclusive growth path going by the fact that the government has recognized the need for a change in the course of action and has undertaken key reforms to restore macroeconomic stability and growth. These reforms coupled with the rise in global oil prices will help to reduce fiscal pressures and realign critical macroeconomic distortions that have hindered the country’s economic growth in the past.
“Nigeria’s huge economy and growing young population offer great incentives to businesses in the country. The potentials in the economy are enormous and if well harnessed with a high level of political stability as we have witnessed in the last 25 years of democratic governance, the opportunities will remain boundless. All these will bring about renewed interest for the insurance industry with more participation from international investors.”
Mr Ayaji said the Company will continue to deploy resources in line with its strategic blueprint to create more innovative and affordable products that will continue to meet the needs and aspirations of its customers.
He added that the Company’s strategic direction will be designed to proactively envisage the likely opportunities that are inherent in the industry and mitigate against possible threats that may adversely affect its operations in the coming years and beyond.
“The Company will remain resilient and innovative in charting new avenues for growth and increased profitability. We will also remain committed to delivering value to all our stakeholders despite the numerous social, economic and environmental challenges faced by the communities we serve. Our continued success has been achieved through financial discipline and the unwavering support of all our stakeholders. Our continuous effort to further increase our capital base is considered a veritable exercise that will improve our underwriting capacity and lead to improved profitability.
“Technology continues to be a major platform for the speedy distribution of products and services and we will consolidate our efforts in ensuring that all aspects of our operations are advanced in line with the latest technology including the use of AI that will ascertain adequate delivery of our services at the doorstep of our customers,’ the Chairman stated.
While assuring the stakeholders of the Company’s readiness to continue weathering the storm and crossing all hurdles on its path to growth and sustainability, he noted that “the dynamism of the business environment will continue to pose its challenges and opportunities for operators, but the insurer’s strength is always built on applying the right approaches and strategies capable of achieving optimal operational efficiency and performance.
Sovereign Trust Insurance Plc is well positioned to take advantage of the opportunities that lie ahead, even as it celebrates 30 years of being a strong brand in the insurance landscape in Nigeria.
