Sovereign Trust Insurance records 296% profit surge in nine months
Managing Director/Chief Executive Officer of Sovereign Trust Insurance Plc, Mr. Lucas Durojaiye, Ph.D.
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Sovereign Trust Insurance Plc has reported a 296 per cent increase in profit after tax to N1.015 billion for the nine months ended September 30, 2026, compared with N256.4 million recorded in the corresponding period of 2025.
The company’s unaudited financial results also showed that profit before tax rose by approximately 296 per cent to N1.194 billion from N301.7 million in the previous year, reflecting improved earnings performance during the period.
The insurer attributed the performance to stronger earnings, improved insurance service results, higher investment returns and a significantly strengthened balance sheet.
Its insurance service result increased by nine per cent to N1.853 billion from N1.707 billion recorded in the corresponding period of 2025.
This improvement was achieved despite a decline in insurance revenue, which moderated to N32.314 billion from N40.134 billion in the previous year.
According to the company, insurance service expenses reduced to N14.349 billion from N18.307 billion, while net expenses from reinsurance contracts held declined to N16.112 billion from N20.119 billion.
These movements supported the improvement in the insurance service result, reflecting progress in managing underwriting costs and the risk structure of its portfolio.
Investment returns also contributed to the improved financial performance, increasing by 26 per cent to N1.731 billion from N1.377 billion in the corresponding period of 2025.
The company recorded significant growth in its balance sheet, with total assets expanding by 69 per cent to N41.272 billion as of September 30, 2026, compared with the previous year.
Total equity also increased by 50 per cent to N21.526 billion, indicating an improvement in the company’s capital position.
Cash and cash equivalents stood at N15.934 billion at the end of September 2026, compared with N5.063 billion recorded at September 30, 2025.
Net cash flows from operating activities rose to N664.5 million from N175.8 million, while the cash flow statement also reflected proceeds of N5.022 billion from the issuance of share capital during the period.
Sovereign Trust Insurance’s reported insurance revenue reflected contributions from a diversified portfolio of non-life insurance businesses, including Energy, Motor, Fire and Property, Marine, General Accident, Contractors’ All Risks and Engineering, Bond and Aviation.
Energy contributed approximately N10.659 billion to reported insurance revenue, followed by Motor with N6.406 billion, Fire and Property with N5.174 billion, and Marine with N3.205 billion.
The company said its diversified underwriting portfolio, covering personal, commercial and specialist risk categories, provided a platform for meeting a broad range of customer protection needs.
Commenting on the performance, the Head, Corporate Communications and Corporate Planning, Mensah Simon, said the improved earnings and expanded balance sheet reinforced the company’s commitment to building a dependable insurance partner for individuals, businesses and institutions.
He noted that the company’s diversified product capabilities and branch footprint provided opportunities for brokers, agents and business partners to deepen relationships and deliver tailored risk-protection solutions.
Simon added that the substantial year-on-year improvement in profit, equity and asset base demonstrated positive financial momentum for shareholders and the investment community.
He said the company remained focused on strengthening underwriting performance, growing quality business and sustaining prudent risk management.
According to him, Sovereign Trust Insurance would continue to pursue customer-centred service, operational effectiveness and long-term value creation.
