By Alex C
Sovereign Trust Insurance has witnessed a 15.80 percent rise in gross premium earned, as the Nigerian insurer relentlessly pushes its products across the country, analysis of the financial statement shows.
For the first nine months through September 2014, Sovereign Trust’s net premium earned increased by 15.80 percent to N3.85 billion from N3.32 billion the same period of the corresponding year (Q3) 2013. The company’s underwriting capabilities were efficient as gross premium increased by 9.20 percent in Q3 2014, against the preceding.
There are opportunities for Sovereign Trust to further consolidate its share of the market as the new auto policy is expected to be a major driver of growth in the insurance industry. Sovereign Trust’s underwriting profits were up by 33.5 percent to N1.46 billion in Q3 2014, from N1.09 billion the same period of the corresponding year 2013.
Claims and underwriting expenses increased by 3.27 percent to N4.73 billion, while management expenses reduced by 1.69 percent to N1.16 billion in the review period. The insurer’s ability to reduce cost to a single digit level culminated in a 60.0 percent rise in profit before tax (PBT) to N672.20 million, compared with N420.60 million the same period of the corresponding year (Q3) 2013.
Similarly, profit after tax (PAT) jumped by 66.80 percent to N613.09 million as against N420.60 billion the preceding year. Total assets were up by 40.50 percent to N8.77 billion compared with N6.24 billion last year, while total equity in the review period increased by 16.80 percent to N4.09 billion.
The underwriting giant has been committed to claims payment as it paid out N1.72 billion to its customers that suffered losses in the year 2013. Analysts see the insurance company settling more claims, given its consistent payout history.
Sovereign Trust Insurance plc is fast emerging as a force to be reckoned with in the Nigerian insurance industry with its extensive branch network spread across the geographic regions of the country.
It would be recalled that Sovereign Trust Insurance has maintained (A-) rating by the Global Credit Rating (GCR), an international renowned rating agency based in South Africa since 2007 to date.