- Advertisement -
33 C
Lagos
Monday, March 1, 2021

Sovereign Trust Insurance Maintains A- Rating with GCR

Must read

For over a decade now, Sovereign Trust Insurance Plc has consistently maintained a confident A- rating with the international rating agency, Global Credit Rating, (GCR) based in South Africa.

The Rating Agency’s recent solvency and operational report for financial institutions in Nigeria and other allied businesses released in December 2020 affirmed that Sovereign Trust Insurance Plc has great potentials for growth in the years ahead.

GCR noted that the Company has shown a great deal of consistency in her claims paying obligations to her numerous customers spread all over the country.

The Report further stated that the listing of the Rights Issue in 2019 helped in increasing the Shareholder’s funds of the Company by 33 percent to N7.8 billion by the end of the Financial year in 2019 as against the figure of N5.8 billion in 2018.

Consequently, by the third quarter of 2020, the Shareholders funds had increased to N8.2 billion which also translated to a 31 percent increase in the corresponding period of 2019 with a figure of N6.3 billion.

In the Rating Agency’s opinion Sovereign Trust Insurance Plc is strong in liquidity with more than adequate claims coverage that compares well to industry averages.

The capital adequacy of the Underwriting Firm is considered strong according to the rating report and this is underpinned by the sizable capital base catering for the quantum of insurance and market risks assumed.

In this regard, the ratio of Shareholders’ funds to NEP (Net Earned Premium) improved to 189.2 percent in the Q3 of 2020 as against 130.9 percent in the corresponding quarter of 2019.

In terms of peer-to-peer performance comparisons, Sovereign Trust Insurance Plc did very well when compared with other selected insurers in terms of Capital, Total Assets, Gross Premium Income (GPI) and Net Premium Income (NPI).

The Report also stated that as a result of STI’s increased underwriting capacity and geographical diversification, the organization has developed a sound business profile supported by a moderately strong competitive position and improved brand acceptance hinged on continuous marketing drive and a well-established Brokers’ relationship of diverse business mix.

As observed by the Rating Agency, insurance penetration remains very low in the country at an estimated ratio of 0.5 percent for general insurance businesses.

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Latest article