Sovereign Trust reports N2.35bn profit

Sovereign Trust Insurance Plc has recorded an improvement in its full-year financial performance, with profit after tax rising by 79 per cent to N2.35bn for the year ended December 31, 2024, up from N1.30bn in the corresponding period of 2023.

The company attributed its profitability increase to a surge in insurance revenue, improved investment returns, and efficient cost management in its consolidated audited financial statements filed with the Nigerian Exchange Limited.

The company’s insurance revenue increased by 109 per cent to N40.45bn in 2024 compared to N19.32bn in 2023.

It delivered a robust insurance service result of N6.65bn, representing a 98 per cent improvement from the previous year’s N3.36bn, despite a rise in insurance service expenses, which grew by 166 per cent to N19.58bn from N7.36bn.

The firm also recorded a 49 per cent increase in interest income to N929.97m, up from N625.01m in 2023, while other investment income stood at N664.90m, compared to N347.51m in the prior year. A net impairment recovery of N107.28m on financial assets also helped strengthen the bottom line, reversing a net loss of N187.30m in the previous year.

Although the company suffered a net foreign exchange loss of N854.40m in 2024, a reversal from a gain of N34.25m in 2023, its overall investment return remained positive at N847.75m, marking a 33 per cent year-on-year growth.

Sovereign Trust Insurance reported a profit before tax of N2.65bn in 2024, an 81 per cent increase from N1.44bn posted in 2023. After accounting for an income tax expense of N294.84m, profit after tax settled at N2.35bn.

The group’s total assets rose by 23 per cent to N28.31bn in 2024, compared to N22.76bn in the previous year, while total liabilities climbed 36 per cent to N12.54bn. Its shareholders’ equity also improved, rising 14 per cent to N15.67bn from N13.63bn.

Basic earnings per share increased to 16.54 kobo in 2024, from 9.13 kobo in 2023, reflecting the strong earnings growth.