INTRODUCTION
Distinguished Shareholders, fellow Board members, representatives of the various regulatory bodies here present, members of the Press, ladies and gentlemen, it is my pleasure to welcome you all, on behalf of the Board of Directors, to the 30th Annual General Meeting of our company, Sovereign Trust Insurance Plc and to present the Annual Report and Accounts for the period ended December 31, 2024 for your consideration. The events of year 2024 will be incomplete without placing it in the context of some significant events in which the resilience of the global economy was tested by a string of overlapping shocks such as supply chain disruptions, high inflation, extreme weather events, and geopolitical conflicts, among others. The global economy in 2024 performed better overall than many had feared in comparison to 2023. Global growth minimally stabilized in the year with some ray of hope to cheer about in the coming year. Declining inflation rates are yielding lower interest rates, easing financial conditions and providing some welcome reliefs to households and businesses. Our commitment to remain resilient, financially viable and profitable as a going concern has been the driving force behind our continued growth trajectory. Permit me to conduct a brief review of the global and domestic environment which shaped our operations in the year under review.
THE GLOBAL ENVIRONMENT
The fallout ofglobal political wars has resulted in disrupted supply-demand chains and significant economic risks to many economies. It is uncertain if there will be cessations of these wars noting how long drawn, they have been. We are watching and observing the impact it will have on us as a nation and industry. New Political leaders have emerged across the world, and their economic philosophies will shape global response to trade. Worthy of note is the reemergence of Donald Trump as the 47th American President. The emergence of a new Prime Minister, Mohammad Sabah Al-Salem, in oil rich Kuwait is instructive for us as a nation whose largest earnings come from the Oil and Gas sector. The global economy grew by 3.23% in 2024, marginally lower than 3.33% in 2023 despite the chal lenges the year faced. The International Monetary Fund (IMF) has declared that ‘global inflation dropped to 5.8% in 2024 with less than 50 countries still facing high inflation compared to before’.
DOMESTIC ENVIRONMENT
Despite the intense macroeconomic head¬winds in 2024, the Nigerian economy exhibited resilience on account of Gross Domestic Product (GDP) performance. The GDP grew at 2.98% in the first quarter, 3.19% in the second quarter and 3.46% in the third quarter respectively. It was forecasted that it may close the year at about 3.6% according to the International Monetary Fund (IMF), for sub-Sa¬hara Africa which is slightly better than the global GDPforecast of3.2%. Similarly, high inflationary pressure was a major con¬cern in 2024 with inflation peaking at 34.2% in November. The interventions of the CBN have influenced the downward slope of inflation. Inflation rate now stands at 22.22% as at June 2025. This gives us a great hope. In another development, the Federal Government approved a new minimum wage of N70,000 from the N30,000. This decision coupled with declining inflation is likely to improve the fortunes ofthe citizenry and give them more disposable income.
THE INSURANCE INDUSTRY
The global insurance landscape in 2024 was shaped by regulatory reforms, digital transformation, and ongoing macro economic pressures. A major milestone was the implementation of IFRS-17 standard. This standard redefined how insurers report their financials and manage risk exposure. These key drivers have led to deepening investments in technology with increased emphasis on automation , artificial intelligence, and customer-centric solutions.
While Property and Casualty insurance lines experienced a slowdown, declining to 2.6% global growth from 3.4% in 2023, Life insurance providers recorded increased demand for retirement and savings products—especially in emerging markets where growth reached 5.1%. In Nigeria, uncertain economic indices caused many individuals and businesses to deprioritise insurance. Notwithstanding this, the sectorhas remained resilient. The National Insurance Commission (NAICOM) adopted an uncompromising stance on claims management, declaring 2024 a year of zero tolerance for unpaid claims. This posture has helped to restore some level of trust among policyholders and served as a clarion call for underperforming operators. ByQ3 2024, the insurance industryrecorded a Gross Premium Written of 1.17 trillion, reflecting a 60.9% year-on-year growth. The non-life segment led, accounting for philosophy for doing the insurance business. Are we selling policies orare people buying our policies? At Sovereign Trust Insurance Plc, we acknowledge these industry shifts not as obstacles, but as catalysts and springboards for transformation. Our capital enhancement strategy, product innovation pipeline, and digital infrastructure road map are instinctively aligned to maximise the opportunities emerging from these developments.
OPERATING RESULTS
Despite the improved macroeconomic climate and challenges introduced by the adoption of new financial reporting standards, Sovereign Trust Insurance Plc recorded a landmark year of performance in 2024. This has been driven largely by strategic execution, prudent risk management, and operational resilience. Our insurance revenue surged by 109.3%, rising from 19.3 billion in 2023 to 40.4 billion in 2024. This growth shows an increased market penetration and the positive impact of our fledgling reengineering initiatives.
The Insurance Service Result, a key profitability indicator under IFRS-17, rose by 98.2%, moving from 3.4 billion in 2023 to 6.6 billion in 2024. This I believe is a direct outcome of improved product structuring and risk assessment models. In the area of investment performance, our Investment Income almost doubled, it grew by 116.8% from 785 million in 2023 to 1.7 billion in 2024. We will continue to revise our portfolio diversification and become more efficient in the deployment of funds.
In fulfilling our commitment to policyholders, in 2024, we paid a total of 4.3 billion in claims, compared to a claims payout of 3.3 billion in the prior year. Our desire is to continue to reinforce trust and confidence in our brand, as we see heightened customer expectations.
Our total assets grew by 24.4%, increasing from 22.82 billion in 2023 to 28.3 billion in 2024. Our total equity as a company also improved, rising by 14.9% to 15.7 billion, up from 13.6 billion the previous year. The company’s Profit Before Tax (PBT) stood at 2.6 billion, representing an 83.8% increase from 1.4 billion recorded in 2023. As we forge ahead, we are committed to ensuring that our future performance will be marked by continued innovation, digital transformation, market agility, cultural transformation , internal capacity development, and sustained focus on underwriting excellence. Our overarching goal is to transition from a legacy position to market leadership. We will continue to pursue strategies that improve profitability and deliver superior value to our stakeholders.
DIVIDEND
In line with our commitment to delivering returns to our shareholders, the Board of Directors is pleased to recommend a dividend of 5 kobo per 50k share . If this recommendation is ratified by the shareholders at this meeting, a total sum of N711.4 million out of the Profit After Tax will be paid as dividend to all our shareholders.
BOARD
Re-election
In accordance with the provisions of the Articles of Association, the Director to retire by rotation at this 30th Annual General Meeting is Mr. Eric Balogun. The retiring Director, being eligible, has offered himself for re-election.
Retirement & Appointment
May I also in the same vein inform this gathering that the former chairman of our company, Mr Oluseun O. Ajayi having spent the mandatory years as stipulated by our Regulator, the National Insurance Commission, NAICOM, has honourably retired from the Board on April 10, 2025. To this end, the Board in her meeting on June 20, 2025, elected me as the Chairman of our dear company. This election validates the strength of our board as we have not had to source externally to continue the invaluable work done so far. I assumed the role with humility, fully aware of the scale of work required and the collaborative effort it demands. I hereby seek your cooperation and support in taking our dear organization to lofty heights.
FUTURE OUTLOOK
As we move into 2025, the economy is expected to undergo significant changes, driven by recalibration of macroeconomic policies. The rebasing of key indicators and the implementation oftax reforms is expected to reshape the country’s fiscal direction. This will put us at the precipice of both opportunities and operational challenges for businesses across sectors including ours. Within the insurance sector, the proposed recapitalisation bill will significantly raise minimum capital requirements. This will reinforce our ongoing capitalisation strategy which aims to position Sovereign Trust Insurance Plc with a capital base exceeding 40 billion. This strategic initiative goes beyond the compliance requirement to meeting future regulatory thresholds but also strengthening our competitive position in a consolidating market. Looking ahead, our business priorities in the coming year will be hinged on these five broad pillars, capital adequacy, product innovation, digital transformation, customer-centricity and operational eĆciency. We will adapt our oąerings to meet the changing preferences of our customer base, especially the younger demographic with data-driven product design and proactive market engagement. Technology will remain central to our growth strategy. Our investment in advanced digital tools, including artificial intelligence will enhance underwriting capabilities, augment distribution, and improve customer experience. These investments will help us deliverfaster, more personalised services and enable scalable expansion. Finally, Sovereign Trust Insurance Plc is well positioned to navigate the changing economic landscape. Through intentional execution and disciplined governance, we are confident in our ability to drive scalable growth, deliver superior shareholder returns, and reinforce our standing as a leading player in Nigeria’s insurance sector.
CONCLUSION
Distinguished shareholders, ladies and gentlemen, as we reflect on the past year, it is certain that the business operating env ironment rema ins c ompl ex and demanding. However, Sovereign Trust Insurance Plc has emerged resilient and must be better positioned to seize opportunities and manage risks eąectively. We must continue to build an organisation capable of delivering consistent value to all stakeholders through disciplined execution, responsive strategies, and an unwavering commitment to excellence. We know that challenges will surface, but we remain resolute in our pursuit of operational efficiency, market repositioning, and expansion of impact. Our performance thus far is a testament to our adaptability, and we are confident in ourabilityto sustain this drive. On behalf of the Board of Directors, I wish to express sincere appreciation to all our stakeholders. • To our policyholders – thank you for your continued trust and patronage.
• To our shareholders – your continued support remains the strength of our progress.
• To my colleagues on the Board – thank you foryourstrategic oversight.
• To the management and staff for their relentless dedication and professionalism. As we mark the 30th anniversary of Sovereign Trust Insurance Plc, we do so with a renewed sense of mission. We remain committed to our vision of delivering insurance and financial services of global standards, driven by innovation, integrity, and customer focus. With your continued support, we are confident that the years ahead will lead us into even greater accomplishments and sustainable growth than ever.
Thank you all.
ABIMBOLA OGUNTUNDE
CHAIRMAN