Sovereign Trust Insurance Plc (NGX: SOVRENINS) recorded a significant growth in its first quarter of 2021 financial results. The gross earnings grew by 46% while the profit after tax rose by 43% according to a press release by the company.
The gross earnings increased to N5.3 billion in Q1 2021 from N3.6 billion in Q1 2020. This is an increase of N1.7 billion. The net premium income also rose by 18% to N1.9 billion in Q1 2021 from the N1.6 billion recorded in Q1 2020.
In the first quarter of 2021, Sovereign Trust Insurance Plc recorded an increase in claims payout to the tune of N1.2 billion compared to N1 billion it paid as claims in the first quarter of 2020. This represents an increase of 17% in claims payout.
The net claims expenses rose by 8% in 2021 first quarter to N965 million compared to the net claims expense of N896 million in the first quarter of 2020.
The profit before tax rose by 66% to N510 million in Q1 2021 from N306 million in Q1 2020. The profit after tax increased by 43% to N392 million in Q1 2021 from the N274 million recorded in Q1 2020.
The earnings per share rose to 3.45 kobo in Q1 2021 from 3.29 kobo in Q1 2020.
The total equity of the company rose by 12% to N9 billion in Q1 2021 from N8 billion in Q1 2020, while the total assets increased by 5% to N14 billion in Q1 2021 from N13.4 billion in Q1 2020.
The equity price of Sovereign Trust Insurance Plc fell by 3.76% to close at N0.26 per share on Wednesday. The price remains unchanged on the floor of the Nigerian Exchange on Thursday, as it has not traded the required quantity to effect a price change. YTD the share price is up 30%.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.