Sovereign Trust Insurance Posts N24m Profit, Proposes No Dividend

By Modupe Gbadeyanka

One of the insurance firms in the country, Sovereign Trust Insurance Plc, has released its audited annual financial statements for the year ended December 31, 2016.

In the results released to the Nigerian Stock Exchange (NSE) today, the company said during the period under review, its profit after tax depreciated to N23.6 million compared with N557.9 million recorded in 2015.

Also, its profit before tax slumped to N45 million in 2016 in contrast to N430.5 million achieved 12 months earlier.

Furthermore, its net premium income stood at N3.92 billion as at December 31, 2016 against N3.93 billion as at December 31, 2015.

In the report, Sovereign Trust Insurance Plc said, “No dividend is proposed in respect of the current year (2015: Nil).”

The firm noted that during the year, it “carried out insurance activities in accordance with its Memorandum and Articles of Association,” pointing out that “a comprehensive review of the business for the year and prospects for the ensuing year will be contained in the Managing Director’s Report in the Annual Report.”

According to the independent auditors’ report, Sovereign Trust Insurance said, “The company has insurance contract liabilities (outstanding claims) stated at N1.072 billion at December 31, 2016, representing 25.97 percent of the company’s total liabilities.”

Sovereign Trust Insurance Plc was incorporated as a limited liability company on February 26, 1980, but was reorganized and commenced business as a reorganized non-life insurance company on January 2, 1995 with an authorized share capital of N30 million and a fully paid up capital of the N20 million following the acquisition and recapitalization of the then Grand Union Assurance Limited.

The company was listed on the Nigerian Stock Exchange on November 29, 2006.

The principal activity of the company continues to be the provision of all classes of non-life insurance and special risk insurance, settlement of claims and Insurance of Policy Holders’ Fund.

Its head office is at 17, Ademola Adetokunbo Street, Victoria Island, Lagos with 17 other branches spread across major cities.