BY OLIVIA NNOROM
Sovereign Trust Insurance, one of Nigeria’s leading insurance underwriting firms, has reported a 37 percent year on year growth in its total gross premium written (GPW) to N7.35 billion in its unaudited results for the first quarter of 2022. Last year, the insurer saw its GPW come in at N5.37 billion in the first quarter of 2021.
An explanatory note accompanying the release of the financials stated that the increase was due to improved total premiums and statutory deposits by customers spurred by the improved operating landscape of the insurance industry.
The insurance underwriter, in the results filed to the Nigerian Exchange, also reported a 19 percent year on year surge in its profit before tax (PBT) to N609 million from N510 million in 2021 while its profit after taxation (PAT) saw a 25 percent increase to N489 million, from N392 million last year, which was offset by a significant increase in tax expenses of the company.
The year 2022 would appear to have started on a bullish note for the insurer given the first quarter result, but greeted with mixed sentiments amidst the stewing economic landscape in the country, which has created a lot of tremors and uncertainty in the business environment for many corporate organisations and business concerns.
The company paid out a total of N946 million in claims to customers during the period, driven by improved claims administration and processes backed by what it described as top-notch technology which say claims expenses reduced by 16 percent, from N965 million in the first quarter of 2021 to N808 million in the first quarter of 2022. Also, there was a 12 percent year on year increase in the total equity, from N9 billion to N10.1 billion in 2022.
Consequently, the improved earnings by the company in the reviewed period drove a significant increase in Sovereign Trust’s earnings per share (EPS) to 4.30 kobo in the first quarter of 2022 from 3.45 kobo in the same period last year. In the same vein, the net assets per share also grew from 79.4 kobo in the first quarter of 2021 to 88.9 kobo in the first quarter of 2022.
But following the impressive first quarter performance by the insurance underwriter, Sovereign Trust Insurance stated that it would remain steadfast as the future looks very promising.
“Notwithstanding the harsh operating environment that has beclouded the operations of so many insurance companies and other corporate organisations in the first quarter of the year, especially at a period when the country is preparing for another general election come 2023, Sovereign Trust Insurance Plc has been able to record meaningful appreciation in all its financial indices going by its first quarter unaudited financial statements. The future indeed, looks very promising,” Olaotan Soyinka, managing and chief executive officer, said