Home Insurance Digest Sovereign Trust Insurance tickles shareholders with rights issue

Sovereign Trust Insurance tickles shareholders with rights issue

Sovereign Trust Insurance goes for N15bn capital, grows profit by 157%

KELVIN EGERUE

Barely days after Sovereign Trust Insurance Plc opened activities with its shareholders for the raising of additional capital to power its operations, indications are that the company may get raise more money that it set out to achieve.

This follows the growing interest of shareholders who have indicated interest to exercise their rights.
Sovereign Trust Insurance Plc had on Monday, June 24, 2019 flagged off a rights issue for its existing shareholders. The permission for the conduct of the rights issue was secured at the company’s last annual general meeting which held in Lagos last year.

The rights issue will run through July 31, 2019.

The company is offering 4,170,411,648 ordinary shares of 0.50k each at 0.50k per share on the basis of one new ordinary share for every two ordinary shares of 0.50k each held as at the close of register on Tuesday, January 15, 2019.

Management had enjoined all Shareholders of the company to take advantage of the unique opportunity by maximally taking up their rights in the Rights Issue with a view to increasing their stake in the company and as well grow their wealth in the very near future as the company is poised to moving on to the next phase of its growth stage.

Mr. Olaotan Soyinka, Managing Director/Chief Executive Officer of Sovereign Trust Insurance Plc, said the Management of the company has set a growth agenda which is aimed at positioning the underwriting firm as one of the top five in the insurance industry in Nigeria. The Managing Director’s appeal to Shareholders of the company was unequivocal. “In achieving this aspiration, we have identified that a very robust capital base is critical to the success of the set agenda; hence the need to call on our Shareholders to fully exercise their rights by subscribing fully to the Rights Issue and ultimately grow their investments in the company”. He said, Sovereign Trust Insurance Plc is working assiduously towards being one of the most preferred Insurance companies in the country for people to do business with, invest in as well as be the choice Employer of Labour.

Judging by the results of the performance of the company in the last financial year in 2018, it leaves no one in doubt that the company is set for the path of profitability. It is quite interesting to note that the company recorded a marked positive shift from what was recorded in the financial year of 2017 when compared to the 2018 financial year performance.

SEGUN BANKOLE Head, Corporate Communications & Brand Management Sovereign Trust Insurance Plc.Had in a statement issued in Lagos recalled that the company recorded a Gross Premium Written of N10.5billion representing a 23% increase over the N8.5billion recorded in 2017. The Net premium income equally grew by 31% to N5.5billion over the sum of N3.85billion recorded in the corresponding year.

In the same vein, the company recorded a Profit Before Tax of N540million as against N202million recorded in year 2017 representing over 167% increase. Profit after tax also stood at N344million, a 118% increase when compared with the sum of N158million recorded in 2017. Consequently, the Return on Capital Employed (ROCE) recorded a positive performance of 9.29% as against 1.87% achieved in the corresponding year of 2017. Similarly, the Earning per share improved by 118% from 1.89kobo in 2017 to 4.13kobo in 2018.

The company’s Total Assets rose from N10.8b to N11.3billion representing 5% increase while the shareholders’ fund increased by 6% from N5.5b in 2017 to N5.8b in 2018.

Certainly, there are brighter days ahead and the opportunity for the shareholders to latch on to the bright side of life with Sovereign Trust Insurance Plc is now.

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