STI Premium Income Rises by 78 Percent

• STI Premium Income Rises by 78 Percent

Despite the negative effects of the recession that characterised the economy during the year, Sovereign Trust Insurance Plc’s total Gross premium written has grown from N2.3 billion in the first quarter of 2016 to N4.1 billion in 2017 representing a 78 per cent growth.

This was made known in a statement signed by the Company’s Head of Corporate Affairs, Segun Bankole, on the Company’s 2017 first quarter unaudited accounts.

The statement showed that the net premium income grew from N1.1 billion in 2016 to N1.6 billion in 2017 amounting to a growth of 48 per cent. Similarly, the underwriting profit rose from N571 million in 2016 to N746 million in 2017 representing a 30 per cent growth while Investment income also grew by 12 per cent from N121 million in 2016 to N135 million in the first quarter of 2017.

The profit before tax grew from N241 million in the first quarter 2016 to N488 million in the same quarter of 2017 representing a growth of 102 per cent. However, the company’s management expenses reduced from N402 million in the first quarter 2016 to N369 million in the same period in 2017.

The company attributed the reduction in management expenses to its team’s commitment to reducing cost of operation with the ultimate aim of delighting its shareholders.

Bankole said: “Things are actually looking up considering the company’s first quarter performance in 2017. No doubt, the year 2017 started on a very shaky note shrouded in uncertainty and a very bleak business outlook for some insurance companies, riding on the premise that some of them fell short of their expectations and aspirations in year 2016 as a result of the recession.

“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 that the nation was still in recession, we were able to record meaningful appreciation in all the financial indices going by first quarter 2017 unaudited financial statements. The future indeed, looks very promising.”