Sovereign Trust Insurance Plc recorded a profit before tax of N1.02 billion for the year ended December 2025, according to its latest unaudited financial statement on the Nigerian Exchange.
Although the company remained profitable, this represents a decrease from N2.64 billion in 2024, as rising costs weighed on earnings during the year.
The bulk of the profit was driven by insurance revenue, which grew to N44.6 billion from N40.4 billion.
Despite the revenue growth, higher operating costs tempered overall profitability, keeping gains modest for the period.
Key Highlights
- Insurance revenue: N44.62 billion (up 10.32% YoY from N40.45 billion)
- Insurance service result: N4.18 billion vs N6.6 billion
- Investment income: N1.53 billion vs N1.59 billion
- Operating profit: N1.02 billion vs N2.6 billion
- Pre-tax profit: N1.02 billion (down 61% YoY from N2.64 billion)
- Total assets: N29.13 billion (up 3% YoY from N28.31 billion)
- Cash balance: N11.9 billion (down from N13.17 billion)
Driving the Numbers
Insurance revenue rose during the year, largely supported by higher premiums, reaching N46.2 billion, up 9.96% from the previous year.
- After accounting for net liabilities for remaining coverage, reported insurance revenue settled at N44.6 billion.
Despite the revenue growth, profitability declined sharply as cost pressures intensified.
- Insurance service expenses of N21.9 billion and reinsurance costs of N18.5 billion weighed heavily on earnings, compressing the revenue and resulting in an insurance service result of N4.1 billion, down from N6.6 billion in 2024.
Investment income remained relatively stable at N1.5 billion, driven by interest income and fair value gains on financial assets.
- However, this was insufficient to offset other operating expenses of N4.8 billion, primarily related to employee benefits and other costs.
As a result, operating profit fell to N1.02 billion from N2.6 billion in 2024, with no impairment charges recorded.
- Pre-tax profit mirrored this, also settling at N1.02 billion.
On the balance sheet, total assets grew modestly from N28.3 billion to N29.1 billion, with cash and cash equivalents of N11.9 billion forming the bulk of assets.
Total equity increased slightly to N16.07 billion from N15.7 billion, while retained earnings narrowed significantly to N621.3 million from N1.7 billion.
Market reaction
Based on the latest share price data, Sovereign Trust Insurance Plc is down 3.7% month-to-date, with shares currently priced at N3.38.
The stock has yet to trigger significant market momentum since its results were released on 5 February 2026.
