Sovereign Trust Insurance Plc has disclosed its resolve to continue to fashion out more strategies aimed at building up the company’s capital base and driving its growth beyond the ongoing capitalisation process.
The Chairman of the company, Dr. Ephraim Faloughi, who stated this while addressing shareholders at the company’s 16th Annual General Meeting (AGM) in Lagos at the weekend said the company’s strategic direction would be crafted to proactively envisage the likely opportunities that were inherent in the insurance industry and mitigate against possible threats that might adversely affect its operations.
Faloughi said the company has identified information technology as a veritable toll to build competitive edge in the industry and would continue to direct huge investment in this direction.
He noted that the company expected more insurance awareness to be created and would leverage on its expertise to create products targeted at the retail segment of the market.
Faloughi explained that at the back of shareholders’ approval at the last AGM for the company to embark on appropriate capital raising process via a Right Issue exercise, the directors have moved into action to actualise the issuance of shares to existing shareholders at a ratio of 1 for 3 ordinary shares already held at 50 kobo per share.
“We have secured all regulatory approvals in this regards and the offer has opened and closed appropriately. It is expected that the offer would witness a successful outcome given the enthusiasm given demonstrated by existing shareholders in supporting the exercise,” he said.
He explained that the Gross Premium recorded in 2010 stood at N4.76 billion as against N4.44 billion posted in 2009, representing a 7 per cent increase, adding that another outstanding highlight of the 2010 accounts was the rise in profit after tax from N4.19 million in 2009 to N308 million in 2010, representing 7,257 per cent increase change while profit before tax in 2009 stood at N13.19 million and grew to N415 million in 2010 amounting to increase of 3,052 per cent .
“The upward march to profitability continued in year 2011 going by the operating results for the first quarter which ended on March 31, 2011. The result showed that Gross Premium posted stood at N2.44 billion, over the N1.67 billion that was recorded in the corresponding period of 2010, representing a 47 per cent increase.
Net Premium earned for the period also stood at N1.66billion which represents a 41 per cent growth rate over the sum of N1.17 billion recorded in the same period of the last financial year.
Profit before tax in the first quarter of 2010 stood at N208.2 million but rose to N597.3 million in the first quarter of 2011, representing 186.9% leap from the previous period under review,” he said.
Shareholders at the meeting endorsed the dividend of 3 kobo per every share held amounting to N156 million recommended by the board of director which according to the chairman represents 50% out of the profit after tax of N308 million and was in line with the company’s tradition of rewarding its shareholders.
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