Sovereign Trust records growth in gross premium in Q1
Sovereign Trust Plc has recorded a growth in its gross premium written, which rose 21 percent to N2.93 billion from N2.31 billion the same period of the corresponding year (Q1) 2013.
Sovereign Trust underwriting capacity improved as net underwriting income spiked by 14.8 percent to N1.89 billion compared with N1.61 billion as at Q1 2013, while gross premium income rose by 24.4 percent to N2.57 billion in the review period.
Net premium earned increased by 19.9 percent to N1.70 billion in Q1 2014 compared with N1.36 billion as at Q1 2013, while reinsurance expenses spiked by 33.1 percent to N872.25 million in the period under review.
Profit before tax (PBT) for the first quarter of 2014 reduced by 92.3 percent to N160.46 million in Q1 2014 from N308.63 million as at Q1 2013.
Profit after tax (PAT) also fell by 84.6 percent to N140.04 million as against N259.25 million as at Q1 2013.
Claims and underwriting expenses were up by 54.48 percent to N1.30 billion in Q1 2014 as against N845.54 million as at Q1 2013.
The Nigeria insurer can tap into the Nigeria population of 170 million and rising middle class to bolster performer and increase its share of the market.
In other to expand its portfolio of financial services, the company has initiated moves to enter into under writing life business by acquiring a life insurance operator in the country.
This will open an array of investment opportunities and also strengthen its underwriting capacity.
Sovereign Trust Insurance Plc commenced business in January 1995 following the restructuring and recapitalization of the then Grand Union assurances Limited.
In recognition of the insurer's expertise in Oil and Gas, Sovereign trust was appointed into the Oil and Energy Insurance Pool of the African insurance market.
Return on Average Equity (ROaE) was 6.55 percent while the Return on Average Assets stood at 2.82 percent in the review period.
Total assets were down by 3.22 percent to N7.95 billion in Q1 2014 from N8.22 billion as at Q1 2013.
The Nigeria insurer's share price closed at N0.50 on July 22nd 2014 on the floor of the Nigeria stock exchange, while market capitalization was N3.35 billion.