By Alex C
Underwriting firm, Sovereign Trust Insurance plc has noted growth opportunities in Nigeria’s burgeoning economy, rising population, low insurance penetration and ongoing reforms in the power sector, saying it provides potential for new income and increased shareholder value.
Looking at the future outlook of the insurance industry, the Company argues that with ongoing reforms in the economy, there would be increased demand for risk management and suggest why there has been increased interest of foreign players in the industry in recent times.
Ephraim Faloughi, chairman of the board Sovereign Trust Insurance plc speaking on the future of the Company during its 19th Annual General Meeting in Lagos said the Nigeria’s bourgeoning economy and growing population offer great incentive to businesses in the country. “The potentials of the economy cannot be hidden even in the face of renewed interest from international players.
According to him, all of these, coupled with low penetration rate of insurance market are pointers to great opportunities available in the insurance industry.
“We would continue to deploy its resources in line with its strategic blueprint to produce more innovative and bespoke products that will continue to meet the needs and aspiration of its customers.”
Faloghi said that the rapid changes in the insurance industry are justifications for proactive response to shoring up the firm’s capital base using both organic and in-organic approach.
“We believe this will position us appropriately in both the local and international market,” he said.
He disclosed that the firm has paid a total of N1.751billion as claims for the financial year ended December 31, 2013, rising N920.424million from what was paid out in 2012, indicating an increase of 90 percent.
While gross premium appreciated by 12 percent from N7.742billion at the end of 2012 to N8.673 billion at the close of business December 31, 2013, the total asset rose from N7.113billion in 2012 to N8.649billion in December 2013, representing an increase of 22 percent.
However the company’s profit dropped by 166 per cent from N1.476billion in 2012 to N 346.340 million in the review period of 2013.