FY2015: Sovereign Trust, Staco Insurance record profit

Sovereign Trust Insurance (STI) Plc and Staco Insurance Plc have both posted profits in their 2015 financial year.

The two firms, while disclosing their 2015 financial statements to the shareholders in Lagos over the weekend, promised to always make their respective companies profitable, irrespective of the harsh business operating environment in the country.

On his part, Mr. Oluseun Ajayi, Chairman, Sovereign Trust said the insurer posted a Profit After Tax (PAT) of N582.21 million in 2015, adding that, in spite the tough operating terrain, it was able to sustain a considerable growth as the Net Profit increased by 97 per cent, moving from N294.94 million in 2014 to N582.21 million in 2015. This feat, he said, was traceable to several cost reduction mechanism adopted by the company in the course of the year.

Stating that the firm experienced a slight fall in Gross Premium Written and Underwriting Profit, he linked this performance to the harsh operating terrain and policy uncertainty experienced in the country during the year. The firm’s gross premium written for the year stood at N7.13 billion; net underwriting income, N4.35 billion and claims settlement, N1.5 billion.

STI, he pointed out, has deployed measures and strategies aimed at increasing income generation and positioning the brand for improved service delivery.

In the same vein, Staco Insurance Plc recorded a Profit After Tax (PAT) of N84.32 profit in its 2015 financial year.

Mr. Dere Otubu, Former Chairman, Staco Insurance, who stated this at the company’s AGM in Lagos, noted that its Gross Premium stood at N6.19 billion, while Net Premium earned was N4.68 billion and even as its Profit Before Tax (PBT) was N168.61 million.

2015, he pointed out, was full of challenges, which gave rise to a decrease in Revenue of 3.9 per cent from N5.96 billion in 2014 to N5.73 billion in 2015.

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Otubu pointed out that the firm’s underwriting results also decreased by 16.61 per cent, from N2.33 billion in 2014 to N1.94 billion in 2015 while Profit Before Tax fell by 54.72 per cent from N137.68 million to N62.34 million in 2015. However, the firm equally announced the appointed of Turoti Samuel as the new chairman.