Sovereign Trust Insurance (STI) Plc, one of the foremost underwriting firms in the country has recorded a significant increase in its total asset as it grew to N9.5 billion in 2016 from N9.2 billion achieved in 2015, thus indicating a 3.26 per cent growth.
The firm’s comprehensive income net of tax rose to N186 million from N19 million recorded in the comparable of 2015.
Investment income equally recorded 32 per cent surge, from N214 million in 2015 to N281 million in 2016.
The firm however recorded drop in gross premium written as it dipped to N6.3 billion in the period under review from 2015 figure of N7.1 billion, attributable to severe harsh economic environment within the period.
Addressing shareholders at the firm’s 22nd Annual General Meeting in Lagos, the Chairman, STI, Oluseun Ajayi, said in spite of the difficult operating business environment in 2016, Sovereign Trust Insurance fared well as it is seen in its asset base recording 3.26 per cent growth rate.
He attributed the drop in firms gross premium to economic downturn in the country occasioned by FOREX scarcity, negative effect on the value of the Naira among others.
He further regretted that increase on foreign currency and the drop in the consumption of insurance by the insuring public aa well as generally bad economic situation in the country adversely affected the firm’s bottomline.
Speaking on the future outlook of the firm, Ajayi assured that STI was poised to take advantage of the nation’s economic recovery to grow business and ensure meaningful returns to shareholders.
“The drive to continue to uphold comprehensive growth strategy still forms the background upon which our company is built. With our updated knowledge and understanding of the domestic business dynamics, our strategic direction will be designed to proactively envisage the likely opportunities that are inherent in the industry and mitigate against possible threats that may adversely affect our operations in the current year and beyond”, he assured.