Sovereign Trust Insurance has improved its Profit After Tax, PAT for the first quarter of 2021 by 43 percent. This was contained in the financial statement made available on the Nigerian Exchange.
According to the financial report which shows a great improvement compared to last year’s first quarter, the PAT recorded for the period under review was valued at N392 million which represent N118 million rise from the same period last year.
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While the Gross Premiums Written, GPR grew during the first quarter of 2021 reaching N5.4 billion compared to the N3.6 billion recorded the previous year, the Gross Premium Income, GPI was valued at N5.2 billion as against the N3.6 recorded during the first quarter of last year.
Net premiums earned and net underwriting income were valued at N1.9 billion and N2.5 billion in the first quarter of the year under study. This shows an upgrade compared to the N1.6 billion and N2 billion recorded in the first three month of 2020. Similarly, investment incomes, at N115 million, depicts a creeping rise from the N112 million recorded last year.
Nonetheless the significant improvement in income, the reinsurance expenses weighed heavily on the income level as it (reinsurance expenses) amounted to N3.2 billion compared to the same period of last year which was valued at N2 billion. In the same vein, the claim expenses and Underwriting Expenses in the first quarter this year hit N965 million and N681 million respectively.
Despite the lingering effect of COVID-19, Sovereign Trust insurance which recorded an increase in PAT by 37 percent for the full year 2020 – amounting to N687 million compared to the amount recorded for the previous year – has continued in the path to deliver well as seen in the first quarter report.
Commenting on the firm’s performance, Olaotan Soyinka, the managing director and Chief Executive Officer of the Underwriting Firm said the development is an encouraging one considering the level of work that was put in place.
“The management of the company is committed to meeting and surpassing the expectations and aspiration of its shareholders and stakeholders alike. These expectations 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’d elight in the years ahead,” He said.