For the financial year 2020, Sovereign Trust Insurance Plc recorded Profit After Tax (PAT) of N687 million, against N503 million attained in 2019.
A statement issued on Saturday by Mr Olusegun Bankole, the insurer’s Deputy General Manager/Head, Sales and Corporate Communications, explained that the firm was able to achieve the growth in spite of the challenging operating environment that characterised operations of most businesses in the country in 2020.
He said that such challenges were largely due to the effects of the COVID-19 pandemic and, also, the seeming lull in the insurance sector business in the year.
The Managing Director/Chief Executive Officer of the underwriting firm, Mr Olaotan Soyinka, also quoted in the statement said the development was encouraging considering the level of work that was put in place in 2020.
Soyinka noted that the company recorded a leap of 37 per cent in its PAT of N687 million as against N503 million recorded in year 2019.
He explained that the Gross Premium written in 2020 stood at N11.1 billion compared to the N10.8 billion written in 2019, representing a marginal increase of two per cent.
The managing director said that the company’s total assets rose from N13.4 billion to N14.8 billion in 2020 representing 11 per cent increase.
“As the company grew its balance sheet in 2020, so did it also increase its claims payout.
“In 2020, a total of N3.48 billion was paid as claims against N2.2 billion that was paid in 2019.
“This in a way underscores the company’s claims paying ability coupled with the company’s renewed attention at delighting its customers.
“The net premium income also grew by 10 per cent from N5.9 billion to N6.5 billion in 2020,” he said.
Soyinka gave the assurance that the insurance firm was committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike.
He said that the performance levels were a confirmation of the management’s determination to effectively and strategically position the company as one of the leading insurance companies in the country.
According to him, this will at the same time, propel the insurer to a profitable height for shareholders’ delight in the future.