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Friday, January 15, 2021 / 3:00PM / NSE / Header Image Credit: Sovereign Trust Insurance
For
over a decade now, Sovereign Trust Insurance Plc (Sovereign Trust or the
Company)
has consistently maintained a confident A- rating with the international rating agency, Global Credit
Rating, (GCR or Rating Agency) based in South Africa. The Rating Agency's
recent solvency and operational report for financial institutions in Nigeria
and other allied businesses (the Report) released in December 2020 affirmed that
Sovereign Trust Insurance Plc has great potentials for growth in the years
ahead considering some of the strategies that have been put in place to
propel its operations. Global Credit Rating noted that the Company has shown a great
deal of consistency in her claims paying obligations to her numerous
customers spread all over the country.
The
Report further stated that the listing of the Rights Issue in 2019 helped in
increasing
the Shareholders' funds of the Company by 33.8%, to N7.8b by the end of the Financial year in 2019 as against
the figure of N5.8b in 2018. Consequently, by the third quarter of 2020, me
Shareholders' funds had increased to N8.2b which also translated to a 31% increase in the corresponding period of 2019 with a figure of
N6.3b. In the Rating Agency's opinion, Sovereign Trust Insurance Plc is
strong in liquidity with more than adequate claims coverage that compares well to industry averages.
The
capital adequacy of the Underwriting Firm is considered strong according
to the
rating report and this is underpinned by the sizeable capital base catering for the quantum of insurance and
market risks assumed. In this regard, the ratio of Shareholders' funds to NEP, (Net
Earned Premium) improved to 189.2% in the Q3 of 2020 as against 130.9% in the
corresponding quarter of 2019.
In
terms of peer-to-peer performance comparison, Sovereign Trust Insurance Plc did very well when compared with other
selected insurers in terms of Capital, Total Assets, Gross Premium Income (GPI}
and Net Premium Income (NPI).
The
company has creatively been able to develop a good mix of its clientele base with personal lines contributing 42% of
its Gross Premium Income during the rating period. The introduction of the
Enhanced Third-Party Motor Insurance Cover with the acronym E3P in 2019
complemented the efforts of Management at driving retail business
initiatives in the industry. Other new retail products are already in the pipeline and will
soon be introduced to the market in a not-too-long distant time.
The
Report also stated that as a result of STI's increased underwriting capacity and geographical diversification, the
organization has developed a sound business profile supported by a moderately
strong competitive position and improved brand acceptance hinged on continuous
marketing drive and a well-established Brokers' relationship of
diverse business mix.
As
observed by the Rating Agency, insurance penetration remains very low in
the
country at an estimated ratio of 0.5% for general insurance businesses. Sovereign Trust Insurance Pic has over the
years demonstrated commitment to optimally maintaining a leading position in the
insurance industry in Nigeria.
Visit Sovereign
Trust Insurance Plc IR Page in Proshare MARKETS
Graph - One Year Share Price Movement
Table: Q3
2020 Unaudited Results
Related News
1.
SOVRENINS
Declares N537.09m PAT in Q3 2020 Results SP N0.20k ...
2. SOVRENINS Announces the
Postponement of Its Annual General Meeting
3.
SOVRENINS Declares
N449m PAT in Q2 2020 Results SP N0.20K ...
4.
SOVRENINS Declares
N275m PAT in Q1 2020 Results SP N0.20K ...
5.
SOVRENINS Declares
N503m PAT in 2019 Audited Results SP N0.20K ...
6.
SOVRENINS Notifies of
Late Filing of the Company s 2019 AFS...
7.
SOVRENINS Declares
N371m PAT in Q4 Unaudited 2019 Results,(SP:N0.22k)
8.
SOVRENINS: Listing of
Additional 4,170,411,648 Ordinary Shares Issued by way of a Rights Issue
9.
SOVRENINS Declares
N501.87m PAT in Q3 2019 Results,(SP:N0.20k)
10.
SOVRENINS Declares
N480.49 million PAT in Q2'19 Results,(SP:N0.20k)
11.
SOVRENINS Declares
N308.65m PAT in Q1 2019 Results,(SP:N0.25k)