Worried by dwindling financial performance mostly caused by operating environment, the Sovereign Trust Insurance Plc, (STI) said it will adopt a combination of organic and in-organic growth strategies to remain competitive in the industry.
The company also said it will consider capitalisation a continuous exercise to enable management competitively re-position the company in terms of capital.
At its Annual General Meeting (AGM) in Lagos today, chairman of the company, Ephraim Faloughi, pointed out that entrance of international brands into the Nigerian market would engender serious competition in the industry.
“We recognise the rapid changing nature of our customers’ expectations and are aware of the imperative of embracing innovation and sound initiatives toward meeting their needs through bespoke services” Foloughi noted.
On the company’s operating result, the chairman disclosed that the company’s gross premium for the year ended 31, December 2014, stood at N7.2 billion representing 16 percent decline over a sum of N8.6 billion in the previous year.
“Profit before tax also declined 62% from N857.8 million recorded in the year ended December 2013 to N326 million for the year ended 31st December,2014. In the same vein, Profit after tax decreased by 68% to close the year at N294 million reported in 2013” the chairman said.
On capitalisation, Faloughi said the last rights issue offered by company was successful as it recorded a gross proceed of N734,532,951.00 representing 64.1 percent success and reflected in the paid up capital of the company in the year 2015.