BY ZAKA KHALIQ, Lagos
Sovereign Trust Insurance (STI) Plc has posted N11.2 billion gross premium written in its 2020 financial year end. The insurer had recorded N10.3billion gross premium in its 2019 financial year, even as its net premium income grew by 10 per cent from N5.9billion in 2019 to N6.5billion in 2020.
The net underwriting income grew by 9.7 per cent from N6.9billion in 2019 to N7.6billion in 2020, while the performance resulted in a profit before tax of N796million and a profit after tax of N688million in 2020, translating to 37% increase when compared with the sum of N503million recorded in 2019.
The size and quality of the company’s balance sheet equally improved as its total assets increased from N13.4billion in 2019 to N14.8billion in 2020 representing 10.5 per cent growth.
Similarly, the earning per share also improved by 33 per cent from 6kobo in 2019 to 8kobo in 2020.
Furthermore, the return on capital employed (ROCE) of the company recorded a positive performance of 8.1 per cent in 2020 as against 5.6 per cent achieved in the corresponding year of 2019, while the investment and other income grew by 27 per cent from N468million in 2019 to N622million in 2020.
Responding, the managing director and chief executive officer of the company, Mr. Olaotan Soyinka, said: “by no means, 2020 was a very tough year for many businesses, but the fundamentals of our company are strong, and this is buttressed by our capacity to remain profitable despite the harsh economic conditions prevailing in the business environment.”