Sovereign Trust Insurance, STI Plc boosts its balance sheet by 3.26 per cent from N9.2 billion in 2015 to N9.5 billion in 2016, its Chairman, Oluseun Ajayi, has said.
The positive outlook came despite the harsh operating environment during the 2016 financial year.
Ajayi, who spoke at the company’s 22nd Annual General Meeting (AGM) held in Lagos, however, said there was a downward shift in the gross premium written compared to the same period ended December 31, 2015.
He said the company ended the year with a gross premium written of N6.3 billion as against N7.1 billion in 2015.
He stressed that the year was very tough for many business operators and the industry with the attendant foreign exchange scarcity which had a negative effect on the value of the Naira.
He said as a result of the increase on foreign currency and the drop in the consumption of insurance by the insuring public, the company’s profit in the year was affected.
From a profit before tax of N454 million in 2015, profit before tax in 2016 dropped to N44.98 million in 2016 while profit after tax was N23.59 million, he added.
He said the comprehensive income net of tax rose to N186 million from N19 million in 2015.
He said their investment income grew from N214 million in 2015 to N281 million in 2016, representing about 32 growth rates.