STI unveils five-year strategic plan, grosses N11 billion
Sovereign Trust Insurance Plc (STI) has unveiled a new strategic plan tagged “T522” to actualise its plan targeted, at becoming the top five insurers, in Nigeria by year 2022.
Meanwhile, it has declared N10.5 billion gross premium written from its business operations during the period ended December 31, 2018, representing 23 per cent higher than the N8.5 billion recorded in the same period in 2017.
The company’s net premium income equally appreciated by 31 per cent to N5.5 billion over N3.85 billion recorded in the corresponding period of 2017.
The company, in the same vein, recorded a profit before tax of N540 million, against N202 million recorded in 2017, representing over 167 per cent increase, while profit after tax also rose to N344 million or 118 per cent increase when compared with N158 million recorded in 2017.
Speaking at the company’s 24th yearly general meeting in Lagos, the Chairman, Oluseun Ajayi, said the performance is an indication of the company’s commitment to sustaining growth in revenues and profitability.
He said the Return On Capital Employed (ROCE) recorded a positive performance of 9.29 per cent, against 1.87 per cent achieved in the corresponding period of 2017, while the earnings per share improved by 118 per cent from 189 kobo in 2017 to 413 kobo in 2018.
Ajayi said the size and quality of the company’s balance sheet improved substantially, while the firm’s total assets rose from N10.8 billion to N11.3 billion representing five per cent increase.
He said the shareholders’ fund increased by six per cent from N5.5 billion in 2017 to N5.8 billion in 2018, noting that in all, the company recorded a modest financial performance in the year under review.
According to him, despite the challenging business environment in 2018, the company returned to achieving steady revenue growth and profitability.
“The increasing competition in our industry has consistently re-engineered our strategies and we will not rest on our oars. Our commitment to continuously take leadership in all our product lines remain unperturbed.
“Our dear company has continued to affirm its commitment and capacity to honour all genuine claims as and when due. The company, in the past year settled claims totaling N4.2 billion to various insured spread across the country.
“Going forward, the Chairman said the mandate to scale up the company’s capital base is already at an advanced stage. Our programme for recapitalisation is already on course with ongoing issuance of Rights to existing shareholders of the company,” he said.
He said with the schedule, the company will be issuing a total of 4,170,411,648 ordinary shares to its esteemed shareholders which he said is expected to be finalized by the third quarter of this year, adding that other capital raising options as advised by the company’s financial advisor will be considered in the course of the year to ensure the company is set on a very solid and competitive platform in the industry.
Ajayi urged shareholders to support the Right Issue programme to succeed and expressed optimism that the new minimum wage bill recently passed and accented to by the Federal Government will, to a great extent, increase demand and supplies in the economy, adding: “insurance service is expected to benefit by the law in terms of premium generation as disposable income improves.”