Prime Business AfricaSovereign Trust Insurance grew its revenue from N15.46 billion generated in the first quarter (Q1) of 2024 to N20.44 billion in Q1 2025, indicating a 32 percent increase.
This was announced in the company’s Q1 2025 financial statements, which also revealed that Sovereign Trust recorded N5.55 billion in insurance service expenses in Q1 2025, up by 42 percent from N3.90 billion in the corresponding period last year.
Join our WhatsApp ChannelAlso, net expenses from reinsurance contracts increased by 28.81 percent year-on-year from N10.18 billion to N13.12 billion.
Similarly, Sovereign Trust’s insurance service result grew by 29 percent to N1.77 billion during the period under review, exceeding the N1.37 billion recorded in the first quarter of 2024.
Furthermore, a 174 percent increase in the company’s investment return supported its income, as it rose from N212.27 million in Q1 of 2024 to N581.63 million in the same quarter this year.
However, a 151.46 percent year-on-year increase in finance expenses from insurance contracts issued impacted the balance sheet, after rising from N172.67 million to N434.22 million.
Also, the company’s finance income from reinsurance contracts issued dropped by 14.10 percent to N106.09 million in the first quarter of 2025, from N123.50 million reported in the corresponding period last year.
Nonetheless, the threefold increase in the finance expenses and the double-digit decrease in the finance income did not stop Sovereign Trust from recording 35 percent growth in its profit before tax (PBT).
Sovereign Trust’s profit before tax increased to N1.01 billion in Q1 2025, surpassing the N748.21 million reported in the first quarter of last year.
In addition, the insurer filed N157.15 million in income tax for Q1 2025, compared to the N112.23 million posted in Q1 2024, indicating an increase of 40.02 percent.
Sovereign Trust also reported N853.24 million as profit after tax (PAT) at the end of the quarter under review, indicating the company’s net income grew by 34 percent compared to the N635.98 million posted in Q1 last year.
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