Sovereign Trust crosses phase one recapitalization hurdle, holds AGM Nov., 26
Despite the challenging operating environment occasioned by the global covid-19 pandemic which has led to so many businesses grappling for survival including the Insurance Industry in 2020, Sovereign Trust Insurance Plc has once again proved its resilient determination to rise above board in the midst of so many obstacles.
To this end, the Company said it has scaled through the first phase of the recapitalization process of the Insurance Industry before the December 31, 2020 deadline as stipulated by the National Insurance Commission (NAICOM).
Also the firm’s 25th Annual General Meeting (AGM) earlier scheduled for Thursday, October 22, 2020, but postponed as a result of curfew imposed by the Lagos State government will now hold today, Thursday, November 26, 2020, virtually.
The unaudited third quarter result of the Company made public on the Floor of The Nigerian Stock Exchange shows that the Company recorded a growth of 7% in its Profit Before Tax totaling N600m as against N560m recorded in the corresponding period in year 2019 while profit after tax also increased with the same 7% margin from N501m to N537m in the period under review in spite of the fact that gross premium written dipped by 8% from N9.1b in 2019 to N8.4b in 2020 third quarter.
One other very significant highlight of the 2020 Q3 unaudited result is the increase in the paid-up capital of Sovereign Trust from N4.1b in 2019 third quarter to N5.68b in third quarter of 2020 representing a 36% growth rate. The Company’s Shareholders’ Funds also grew by 6.3% in the period under review from N7.7b in September 2019 to N8.2b in the corresponding period of 2020.
Commenting on the unaudited third quarter result of the Company after being made public on the Floor of The Nigerian Stock Exchange., the Managing Director and Chief Executive Officer of the Company, Mr. Olaotan Soyinka said the result is a reflection of the realities of the times and that the Company is undaunted and will continue to remain focused in ensuring that the Company keeps up with its obligations as a very dynamic and responsive corporate entity.
While briefing newsmen in Lagos also, the MD/CEO, said the Management of the Company is committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike as the Company remains focused on her strategic objective of accelerating the growth of the Company through asset base, revenue and profitability in the years ahead.
