Sovereign Trust Insurance posts 1007% leap in Q1 2017 profit

Sovereign Trust Insurance Plc has posted a remarkable boost in profit and loss (P/L) lines the first quarter 2017, even as its total revenue for the period also dropped remarkably.

The company’s first quarter Q1 periodic result published by the Nigerian Stock Exchange (NSE) showed that Profit before Tax (PBT) grew by 1,007 per cent or N444.352 million, closing the Q1 period at N488.474million, compared to N44, 122 million posted in Q4 2016.

The company’s total Revenue for the first quarter declined remarkably to N2.2 billion, from N7.42 billion reflecting N5.22 billion drop in revenue or 70 per cent decline.

However, claims expense in the period dropped to N562, 995million, from N1.44 billion in the last quarter, an N877.87 million or 61 per cent drop in claims paid.

Other Expenses recorded during the period amounted to N944.754 million, from N3.03 billion, indicating N2.09 billion or 69 per cent drop.

Sovereign Trust Insurance Plc commenced business in January 1995 following the restructuring and recapitalization of the then Grand Union assurances Limited.

Currently the company’s authorized share capital is N5.25Billion divided into 10.5 billion units of 50 kobo per share and a fully paid-up capital and Shareholders’ funds of over N3.4 Billion.

Meanwhile, the company’s Q1 result further showed that Financial Assets as at the close of first quarter 2017 stood at N980,728, from N904,207 recorded in the last quarter ended December 31,2016, reflecting growth by N76,521 or 8 per cent.

Total Benefits, Claims and Other Expenses recorded by Sovereign Trust Insurance in Q1 2017 stood at N1.51 billion, from N4.48 billion in the last quarter of 2016, indicating N2.97 billion or 66 per cent change.

Profit For the Year N437.191million from N22.739 million posted in the last quarter 31 December 2016, reflecting N414.452 million or 1,823 per cent growth.