From left: Company Secretary Sovereign Trust Insurance Plc, Yetunde Martins; Chairman, Dr Ephraim Faloughi and Managing Director, Olawale Onaolapo at the event.
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Chuks Udo Okonta
Chuks Udo Okonta
Sovereign Trust Insurance Plc posted a gross premium of N7.2 billion in 2014, as against N8.6 written in 2013.
Its Chairman, Dr Ephraim Faloughi, disclosed this today at the firm’s annual general meeting in Lagos, stressing that the company’s profit before tax stood at N326 million as against N857.8 million recorded in 2013.
He noted that the profit after tax was N294 million, as against N929 million in the previous year. He said the firm in living to its responsibilities, paid N2.18 billion claims in the year under review.
Faloughi posited that the significant decrease in the profit after tax was as a result of N582.99 million prior year adjustments on claims reserve passed on the 2013 accounts. This adjustments, he said reduced the value of claims charged against the profit for the year and consequently increased the profit before tax for 2013 from N274.85 million to N857.85 million.
He said the adjustment was deducted from the retained earnings and did not affect total equity.
He said the future of the company is bright going by the implementation of its new business model and deployment of competitive strategies to control better market share and improve profit level.
The Managing Director Olawale Onaolapo, said the year’s returns were also affected by the No Premium No Cover policy, as previous businesses underwritten by the firm were left out as the premiums were not paid.
He said the challenge associated with the No Premium No Cover, has been surmounted in this year’s business, as the affected clients have renewed their policies.
Shareholders at the event.
The Secretary, Independent Shareholders Association of Nigeria (ISAN), Adebayo Adeleke, lauded the efforts made by the company, especially in the reduction of its total liability from N5.1 billion in 2013 to N4.3 last year, the growing of total equity from N3.48 billion to N4.16 billion.