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Tag: Sovereign Trust Insurance

  • STI preaches caution at Ember month

    STI preaches caution at Ember month

    Sovereign Trust Insurance Plc has called on Nigerians to be safety-conscious during this  ‘ember’ months so as to safeguard lives and properties.

    The Managing Director, Olaotan Soyinka in a statement, said the possession of insurance policies should not be a reason for carelessness by holders of such policies.

    He stated that while it is generally known that accidents are common during the ‘ember’ months as a result of increased activities during the period with people rushing to meet up with their goals as the year rounds up.

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    He advised that even in the midst of such activities; people should still exercise caution so that we do not get involved in unnecessary mishaps that could have been averted.

     He said: “While it is not in dispute that insurance helps to mitigate against risks, it should not be taken as a licence to throw caution to the wind and be careless. Rather, insurance should be seen as a respite in case of the unforeseen and inevitable.

    ‘‘It is widely known that cases of motor crashes, fire outbreaks and other perils are usually on the increase during the last months of the year, hence the need for caution to be exercised by all and sundry so as to prevent such misfortunes””, he added.

  • STI pays N1.91b claims half year

    STI pays N1.91b claims half year

    Sovereign Trust Insurance (STI) Plc paid N1.91 billion claims to policyholders in half-year 2024, a feat which showed commitment to customer satisfaction evident by prompt claims resolution.

    The Managing Director/CEO of the firm, Olaotan Soyinka, said their commitment to satisfying customers remained unshakeable.

    “We understand the importance of swift claims resolution and are proud to provide financial support when our customers need it the most, especially in this trying period when a lot of the insured see insurance as the last resort of succour when the unplanned happens,’’ he said.

    STI Head of Corporate Communications and Investor Relations, Segun Bankole, who made this known in a statement, said the payment showcased the company’s dedication to serving customers with efficiency and reliability.

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    According to him, the payment covered 1455 claims across various policies.

    He said: “The summary of the claims paid report in the first half shows that fire policies have the highest figure of N931million with motor claims ranking second with N416million, general accident N254million, marine and aviation N218million, engineering N65million followed by oil and gas claims N9.6million and energy N584,000.

    “The underwriting firm did not only pay the claims, but also made regular follow-up calls to ensure the customers were left satisfied.’’

    The beneficiaries praised the underwriting firm for the timely and professional manner it treated them, it added.

  • STI records 23% grow thin revenue

    STI records 23% grow thin revenue

    Sovereign Trust Insurance (STI) Plc made a total of N19.3 billion in 2023 as against the N15.7 billion in the previous year, representing a 23 per cent growth rate.

    Total assets of the underwriting firm also grew by 33 per cent to N22.7 billion in 2023 as against N17.1 billion in 2022.

    Equally of note is the increase in the company’s Total Equity, which also grew by 30 per cent from N10.4 billion in 2022 to N13.5 billion in 2023.

    The return on investment of the company also grew by 49 per cent from N548.7 million in 2022 to N819.4 million in 2023.

    The company further recorded a Profit before Tax of N1.4 billion just as it did in 2022.

    STI Managing Director/Chief Executive Officer, Mr. Olaotan Soyinka, in Lagos said the company achieved the result in spite of the challenging operating environment that characterised operations of most businesses in the country in 2023. He stated that the company maintained its growth trajectory in the period under review when compared with the performance of year 2022.

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    He said: “The performance of the company in 2023 is quite encouraging considering the various business challenges that the insurance Industry had to deal with in the past year. There is definitely room for improvement in the days ahead and we are poised to take advantage of the opportunities that are inherent in the insurance marketplace.

    ‘‘We are committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike.

    ‘‘These performance levels are a confirmation of the management’s determination to effectively and strategically position the company as one of the leading and vibrant insurance companies in the country while also making conscious efforts at propelling the company to a profitable height for shareholders’ delight” in the years ahead.”

    The MD assured that the firm will be paying dividends to its shareholders this year.

  • STI spreads love to highway managers

    STI spreads love to highway managers

    AS part of their Valentine’s Day celebration, Sovereign Trust Insurance (STI) Plc’s staff members took to the streets to spread love to workers of the Lagos Waste Management Authority (LAWMA) popularly known as Highway Managers.

    The STI’s workers distributed items such as gloves, water bottles and takeaway packs to officials of LAWMA in Falomo, Bourdillon Road, Lekki Phase 1, Eti-Osa, Osborne Road, Ozumba Mbadiwe Road, and Adetokunbo Ademola Street.

    STI Managing Director/CEO, Olaotan Soyinka said the initiative was not just about gifts, but also about recognising the essential role that LAWMA play in the state.  “They are often unsung heroes, working long hours in challenging conditions to ensure a clean and healthy environment for all of us.

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    “By showing our appreciation, we hope to not only brighten their day but also inspire others to acknowledge their valuable contributions,’’ he added.

    Also, STI’s spokesperson, Segun Bankole, said the gesture was in recognition of the important role the Highway Managers play in ensuring that Lagos and its highways are kept clean.

    He said the underwriting firm appreciates that there is there is dignity in labour.

  • Sovereign Trust Insurance raises N1.43b from shareholders

    Sovereign Trust Insurance raises N1.43b from shareholders

    Sovereign Trust Insurance (STI) Plc has raised about N1.432 billion new equity funds from its shareholders.

    The additional shares arising from the new capital raising were listed at the Nigerian Exchange (NGX), completing the process.

    A total of 2.864 billion ordinary shares of 50 Kobo each were issued to shareholders at 50 kobo per share, and were listed at the NGX at the weekend. The newly listed shares increased STI’s total issued and fully paid-up shares from 11.36 billion to 14.23 billion ordinary shares of 50 kobo each.

    As a rights issue, the shares were pre-allotted to shareholders on the register of the insurance company as at Friday, July 22, 2022 on the basis of one  new ordinary share for every four ordinary shares held.

    The latest capital raising was the second major fund raising by STI in recent years. It had in 2019 raised N2.09 billion from its shareholders. STI had offered 4.17 billion ordinary shares of 50 kobo each at 50 kobo per share.

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    Shareholders of STI had in 2019 approved a new capital raising plan for the insurance company. Shareholders had authorised the board of the company to create 5.0 billion new ordinary shares of 50 kobo each to increase its authorised share capital to N10 billion of 20.0 billion ordinary shares of 50 kobo each.

    Shareholders also approved the proposal to raise “additional equity capital for the company up to the maximum of the authorised share capital” with additional mandate to the board to absorb excess money in the event of oversubscription of the initial offer.

    The National Insurance Commission (NAICOM) had in May 2019 released new capital requirements for insurance businesses with directive operators to shore up their minimum capital base to the required level. The minimum paid-up share capital of a life insurance company was increased from N2 billion to N8 billion, non-life insurance from N3 billion to N10 billion, composite insurance from N5 billion to N18 billion while re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.

    Insurance companies are required to comply fully with the new minimum capital base by June 30, 2020. While the new capital requirements have been suspended, any insurance companies are taking proactive steps to rebuild their capital base.

    NAICOM recently revoked the operating licences of two insurance companies over their inability to meet their financial obligations.

  • Sovereign Trust Insurance gets regulatory approval to raise N2.09b

    Authorities at the Nigerian Stock Exchange (NSE) have given the nod to Sovereign Trust Insurance Plc to proceed with its new capital raising exercise. Sovereign Trust Insurance is seeking to raise N2.09 billion from existing shareholders as the insurance company seeks to beef up its capital base to place it in better stead for large-ticket transactions.

    A circular obtained yesterday by The Nation indicated that the Quotation Committee of the Exchange has approved the N2.085 billion rights issue, paving the way for the insurance company to round off the pre-offer process and open acceptance list for the rights issue.

    Under the rights issue, Sovereign Trust will issue 4.17 billion ordinary shares of 50 kobo each at offer price of 50 per share. As rights, the new shares to be issued have been pre-allotted on the basis of one new share for every two ordinary shares held as at the close of business on  January 15, 2019.

    Shareholders of Sovereign Trust had recently approved a new capital raising plan for the insurance company, on the heels of the cancelled tier-based minimum solvency capital policy proposed by the National Insurance Commission (NAICOM).

    Shareholders authorised the board of the company to create 5.0 billion new ordinary shares of 50 kobo each to increase its authorised share capital to N10 billion of 20.0 billion ordinary shares of 50 kobo each.  Shareholders also approved the proposal to raise “additional equity capital for the company up to the maximum of the authorised share capital” with additional mandate to the board to absorb excess money in the event of oversubscription of the initial offer.

    Under its capital raising plan, Sovereign Trust could raise funds by issuing new shares to existing shareholders, new general retail investors, existing and new strategic investors or a combination of many means of capital raising.

    While NAICOM has cancelled the new tier-based capitalisation programme, market analysts believed that many insurance companies that had launched emergency capital raising plans may go ahead with their plans as proactive measures. Many analysts expected a considerable consolidation of the Nigerian insurance sector, with capitalisation as a major benchmark.

     

  • Sovereign Trust Insurance to raise N2.09b from shareholders

    Sovereign Trust Insurance Plc has launched a process to raise N2.09 billion from existing shareholders as the insurance company seeks to beef up its capital base to position it in better stead for large-ticket transactions.

    A regulatory filing obtained yesterday by The Nation indicated that Sovereign Trust plans to raise N2.085 billion in new equity funds through a rights issue. The Nigerian Stock Exchange (NSE) confirmed that Sovereign Trust has submitted application, seeking NSE’s approval for the rights issue.

    Under the rights issue, which is expected this quarter, Sovereign Trust will issue 4.17 billion ordinary shares of 50 kobo each at offer price of 50 per share. As rights, the new shares to be issued have been pre-allotted on the basis of one new share for every two ordinary shares held as at the close of business yesterday, Tuesday, January 15, 2019.

    Shareholders of Sovereign Trust had recently approved a new capital raising plan for the insurance company, on the heels of the cancelled tier-based minimum solvency capital policy proposed by the National Insurance Commission (NAICOM).

    Shareholders authorised the board of the company to create 5.0 billion new ordinary shares of 50 kobo each to increase its authorised share capital to N10 billion of 20.0 billion ordinary shares of 50 kobo each.  Shareholders also approved the proposal to raise “additional equity capital for the company up to the maximum of the authorised share capital” with additional mandate to the board to absorb excess money in the event of oversubscription of the initial offer.

    Under its capital raising plan, Sovereign Trust could raise funds by issuing new shares to existing shareholders, new general retail investors, existing and new strategic investors or a combination of many means of capital raising.

    While NAICOM has cancelled the new tier-based capitalisation programme, market analysts believed that many insurance companies that had launched emergency capital raising plans may go ahead with their plans as proactive measures. Many analysts expected a considerable consolidation of the Nigerian insurance sector, with capitalisation as a major benchmark.

  • STI records N8.5b premium income

    Sovereign Trust Insurance (STI) Plc recorded Gross Premium Written (GPW) of N8.5 billion in 2017, a 33 per cent increase over the N6.3 billion recorded in 2016.

    The underwriting firm’s net claims expenses in the year under review stand at N1.3 billion, a 9.5 per cent improvement over the N1.44 billion recorded in the previous year.

    The firm also recorded a Profit Before Tax (PBT) of N202 million as against N44 million recorded in 2016, which represents over 351 per cent increase.

    Profit After Tax (PAT), stood at N157 million, a 569 per cent increase as against N23 million recorded in 2016.

    Its Chairman, Oluseun Ajayi, who made this known at the firm’s Annual General Meeting (AGM) held in Lagos, said Return on Capital Employed (RoCE) recorded a positive performance of 1.87 per cent as against 0.47 per cent in the previous year; investment income rose by 41.6 per cent from N286 million in 2016 to N406 million in 2017.

    He added that the firm’s total assets rose from N9.5 billion to N10 billion, representing 13.7 per cent increase.

    He said the performance could not have been achieved without the efforts of the unified STI team and their commitment to structured business strategies aimed at aggressive revenue generation and cost curtailment in the year.

    Speaking on the firm’s future outlook, he said: “In preparing the organisation for the challenges of the future and in response to the ever-evolving dynamics of the marketplace, our company embarked on a five-year strategic journey. The strategic blueprint was conducted by KPMG, one of the leading consulting firms in the country.

    “Part of the objectives among others will be to position the company as one of the top five insurance companies by 2022 in terms of revenue and profitability while also looking at re-inventing the operations of the organisation by making it the preferred underwriting firm with regards to non-life and special risks underwriting.

    “Just very recently, NAICOM announced the Risk-Based Supervision (RBS) model, which it had been considering. With this development, insurance companies are to operate within a 3-Tier-Based Minimum Solvency Capital, (TBMSC) as directed by the Regulatory body. This comes along with a lot of changes in the way businesses will be conducted henceforth. The RBS is a European Insurance market supervisory initiative, and according to the World Bank, is a supervisory approach that considers each of the risks that companies face and through a structured process, identifies the risks that are most critical to the financial viability of the institution.

    “It is important to state our company’s resolve to adequately operate in the Tier-1 category with the plan of increasing our capital base both organically and inorganically before the commencement of the Tier Based Minimum Solvency Capital (TBMSC) regime.’’

  • Sovereign Trust Insurance extends N1.1b rights issue

    Sovereign Trust Insurance (STI) Plc has extended the acceptance period for its ongoing rights issue by till this weekend.

    STI seeks to raise N1.15 billion in new equity funds from existing shareholders through a rights issue of 2.29 billion ordinary shares of 50 kobo each at the nominal price of 50 kobo per share. The shares were pre-allotted to prequalified shareholders on the basis of one new ordinary share for every three ordinary shares held as at the closure of register for the rights issue.

    Securities & Exchange Commission granted STI additional three weeks, moving the initial closing date from February 20, to Friday, March 13.

    The net proceeds of the rights issue would be used to finance the insurance company’s five-year blueprint. The blueprint is expected to reinforce the company’s competiveness’ in the Nigerian market, including its market share.

    Several companies are turning to existing shareholders to raise funds as the primary public offer market remains largely inactive.

    Access Bank had last week extended the acceptance period for its ongoing rights issue of N52.6 billion. SEC approved the extension of Access Bank Plc’s rights issue by two weeks to March 18. Access Bank is offering 7.63 billion ordinary shares of 50 kobo each to existing shareholders at N6.90 per share. The rights issue, which opened on January 26, was initially scheduled to close on March 4.

    The bank stated that the extension of the acceptance period was done to give shareholders ample time to subscribe for their rights. The management of the bank urged shareholders to take advantage of the extension to pick up their rights.

    It is expected that trading on both rights issues of Access Bank and STI will continue on the Nigerian Stock Exchange (NSE) all through the extended period.

    Majority and retails shareholders in several quoted companies have been using rights issue to bridge equity financing gaps and reduce dependence on bank loans by injecting their own funds into their companies.

    Against the background of the in investors’ apathy and deteriorating pricing trend at the capital market, several core investors that hold the decisive votes on the success of recapitalisation of quoted companies have opted for rights issue, which allows existing shareholders to recapitalise their companies.

    Rights issue gives the first right of refusal to existing shareholders and thus preserve existing shareholding structure. It, however, provides window for new investors to buy into the company through rights trading on the secondary market.

    Market analysts said the growing list of rights issues early this year underscores the preparedness of core investors to refinance their companies as well as the undervaluation of several companies at the stock market.

    According to analysts, rights issue implies significant financial commitment by the core investors.

     

  • STI emerges oil & energy committee member

    Sovereign Trust Insurance Plc has been appointed into the nine-member committee to steer the affairs of the oil & energy pool in Africa.

    The appointment of the firm was announced at the 51st Management Board and 27th Annual General Assembly of African Underwriters in Oil & Energy Insurance at the just concluded African Insurance Organisation’s Conference (AIO), held in Kigali, Rwanda.

    Its Managing Director, Wale Onaolapo said with the recent development, STI alongside two other insurance companies in the country and some African insurance companies, namely, Misr Insurance Company from Egypt, Chanas Assurances S.A, Cameroun, Compagnie Centrale De Reassurance, Algeria, Zeb Re, Kenya, Tunis Re, Tunisia and Cica Re, Togo will administer the Oil and Energy Pool for the next two years.

    Onaolapo said the appointment is in recognition of the company’s expertise over the years in underwriting oil & gas risks in Nigeria and other parts of the African continent.

    He further said the underwriting firm will not relent in providing world-class insurance services in the oil and energy sector and other allied areas.

    He added that the firm considers the energy sector very crucial to the economic development of the country and will continue to exploit the market to maximise every opportunity embedded therein.