By Aliyu DANLADI
Shareholders of Sovereign Trust Insurance (STI) Plc on Thursday approved the company’s plan to raise N2.5 billion new equity fund for improved performance.
They gave their consent at the company’s 2017 Annual General Meeting (AGM) in Lagos.
Speaking on behalf of the shareholders, Pastor Williams Adebayo, President, Greenwish Shareholders’ Association, said the consent was given to enable the company to become one of the top five insurance companies through optimal performance. Adebayo said the consent to raise more capital was given by shareholders to enable the company to become one of the top five insurance companies through optimal performance.
Adebayo commended the company for improving its performance in the year under review which he said was higher than that of 2016.
The authourised share capital of company currently stood at N7.5 billion.
The Chairman of STI, Mr Oluseun Ajayi, presenting the 2017 financial report at the AGM, said that the company’s Gross Written Premium (GPW) hit N8.5 billion.
Ajayi said that the N8.5 billion represented a 33 per cent increase over the N6.3 billion recorded in 2016.
The STI chairman said the Net Claim Expenses (NCE) paid in the year under review was N1.3 billion, representing a 9.5 per cent improvement over N1.44 billion paid in 2016.
“The decrease in NCE was as a result of efficient claims paid in 2016,” the chairman said.
According to him, the company recorded a N202 million Profit before Tax (PbT) in 2017 against N44 million recorded in 2016.
“This represent over 351 per cent increase,” he said.
According to him, the Profit after Tax (PaT) stood at N157 million, a 569 per cent increase when compared with the N23 million recorded in 2016.
“Consequently, the Return on Capital Employed (ROCE) recorded appositive performance of 1.87 per cent as against 0.47 per cent achieved in 2016.
“Similarly, our investment income rose by 41.6 per cent from N286 million in 2016 to N406 million in 2017.
“In addition, our total assets rose from N9.5 billion to N10.8 billion, representing 3.7 per cent increase,’’ Ajayi said.
On the company’s preparation for future challenges, he stressed that the company had embarked on a-five year strategy.
“The objective of the strategy, among others is to reposition the company as one of the best five insurance companies by year 2022 in terms of revenue and profitability,’’ he said.
Ajayi further commended the National Insurance Commission (NAICOM) for focussing on awareness to deepen insurance penetration.
“The moment Nigerians become aware of what they stand to benefit from insurance, they will be willing to buy insurance policies, which will reduce apathy toward insurance products,” he said.
