For many Insurance companies in Nigeria, the year 2016, will remain an unforgettable one in the annals of history to many Operators in the Nigerian Insurance landscape with its attendant challenges amidst an almost recessed economy which is yet to abate.
The story was no different for one of the budding players in the Industry, Sovereign Trust Insurance Plc which recently, got the approval of the National Insurance Commission, NAICOM, for its 2016 Audited Financial Statement. With this development, the Underwriting Firm will be gearing up for the 22nd Annual General Meeting of its Shareholders at a later date to be announced by the organization according to the information made available to the media.
In retrospect, the performance of the company in the year under review, showed a downward shift in the Gross Premium Written when compared to the same period, ended December 31, 2015. From a Gross Premium Income of N7.1Billion in 2015, the Underwriting Firm ended the year 2016, with a Gross Premium Income of N6.3Billion, signaling about N732M shortfall in revenue.
Albeit that, the company showed considerable signs of resilience in some aspect of its operations which to many observers in the Industry portends a promising future for the Underwriting Firm as its Investment Income grew marginally with about N67M from what it was in 2015. As a result of the company’s effective claims administration, its claims exposure in 2016, reduced from N1.5Billion in 2015 to N1.4Billion in the year under review.
The contingency reserve grew from N1.8 Billion in 2015 to N2Billion in the year under review. One can only attribute this to the commitment of the Management Team in making conscious effort at providing for any form of eventuality that might occur at any given time. This to many, is worth applauding as it is seen as a great step towards committing to the assured future of the company.
All said and done, the Shareholders of the company can begin to look forward to a brighter future ahead as the murky economic situation that pervaded operations of most corporate organizations in the country is beginning to show signs of recovery.
For Sovereign Trust Insurance Plc, the Board and Management of the company maintains high hopes for the future and that of the insurance industry in general. The company believes that the future of insurance business in Nigeria is bright and it is poised to latch on to the availing opportunities that the market will bring to bear in delighting its Shareholders and Customers in the years ahead.