Sovereign Trust Records N7.2b Income | Independent Newspapers Limited
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Business, Insurance

Sovereign Trust Records N7.2b Income

Posted: Sep 17, 2015 at 12:00 am   /   by   /   comments (0)

Sovereign Trust Insurance Plc achieved a gross premium income of N7.2 billion in 2014 as against N8.6 billion recorded in 2013, the company’s Chairman, Ephraim Faloughi, said.

Addressing shareholders during the 20th annual general meeting of the underwriting outfit in Lagos, Faloughi said the company’s profit before tax also declined by 62 percent N857 million in 2013 to N326 million in 2014, while its profit after tax decreased by 68 percent from N929 million in 2013 to N294 million in 2014.

However, he said the future of the company is bright particularly with the implementation of its new business model and deployment of competitive strategies to control better market share and improve profit level.

As the shareholders had authorised the directors at the last annual general meeting of the company to embark on appropriate capital raising process via a rights issue exercise, he said the directors have moved into action by issuing shares to existing shareholders at a ratio of one for three shares already held at 50 kobo per share.

He confirmed that the offer recorded a gross proceed of N734,532,951, representing 64.1 percent such rate, noting that this would reflect in the paid up capital of the company during the current operating year.

Going forward, Faloughi said the organisation understands the unprecedented dynamism of the business world, pointing out that its strategic direction will be crafted to proactively envisage the likely opportunities that are inherent in the industry and work against possible threats that may adversely affect its operations.

In appreciation of the fact that the issue of capitalisation must be addressed headlong on a continuous basis, he stated that beyond the just concluded rights issue, the board and management of the insurance firm are continuously assessing several initiatives to competitively position the company in the industry capital wise. He explained that the company aim to achieve this through a combination of organic and inorganic growth strategies. 

Sovereign Trust, he further said, has for long understood the role of its people in powering the growth objective of the company and would continue to put them at the heart of its operations.

“We will also continue to equip and develop our staff to ensure that as individuals and collectively as a company, we are truly grounded in bringing to fruition the wealth creation objective which the company exist to provide for our shareholders,” he stressed.