Sovereign Trust Insurance (STI) Plc has grew its balance sheet by 3..26 per cent from N9.2 billion in 2015 to N9.5 billion in 2016, despite the harsh operating environment during the 2016 financial. The Chairman of the Organization Oluseun Ajayi, has said.
AJayi while presenting the companies scorecard at the just concluded 22nd Annual General Meeting (AGM) of the company held in Lagos, also said there was a downward shift in the gross premium written compared to the same period ended December 31, 2015.
He said the company ended the year with a gross premium written of N6.3 billion as against N7.1 billion in 2015, also stressed that the year was tough for many business operators and the industry with the attendant foreign exchange scarcity which had a negative effect on the value of the Naira.
He said as a result of the increase on foreign currency and the drop in the consumption of insurance by the insuring public, the company’s profit in the year was affected.
From a profit before tax of N454 million in 2015, profit before tax in 2016 dropped to N44.98 million in 2016 while profit after tax was N23.59 million, he added..
He said the comprehensive income net of tax rose to N186 million from N19 million in 2015.
He said their investment income grew from N214 million in 2015 to N281 million in 2016, representing about 32 growth rates.
Ajayi however noted that the economic situation, which affected most organisations, was beginning to show signs of recovery. He was confident that the company would benefit from the recovery in the year.
On the company’s outlook, Ajayi said: “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.
“The expansive economy and growing population offer great opportunities to businesses in the country. The potential of the economy cannot be underestimated even in the face of renewed interest from international investors. All of these, in addition to the low penetration rate of insurance market, are pointers to great opportunities available in our country and industry. We also plan to align with various NAICOM’s growth initiatives in advancing the course of the insurance industry in Nigeria.
“Resources will be continually deployed in line with our strategic master plan to achieve greater success and take our frontal position in the years ahead. We are currently in the process of initiating another five-year strategic direction that will take the company to the next phase of our growth from 2018 through 2022.
Technology, no doubt will form the pivotal thrust of this process in ensuring that we remain competitive and relevant in the insurance market space in many years to come.’’