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Home Insurance & Pension Business

Sovereign Trust beats expectations with 31% premium growth to N4.3bn

by Admin
January 21, 2026
in Insurance & Pension Business
Sovereign Trust Insurance has reported that its gross premium written for the third quarter of 2021 grew by 17 percent to N9.8 billion from N8.4 billion in 2020 with net premium written rising 31 percent year on year to N4.3 billion from N3.2 billion in the same period last year.

 

The growth in underwriting premium has been described as an indication of Sovereign Trust’s resilience as an underwriting organisation and its determination to rise above board in the midst of so many obstacles.

 

Even with the dwindling state of the economy in the midst of the challenges of the post-covid-19 experience, the company saw a 17 percent third quarter year on year growth in its profit before tax to N70l million, as against N600 million recorded in the corresponding period of 2020, while profit after tax increased by 13 percent to N537 million from N506 million in the period under review.

 

According to the company’s third quarter unaudited result for 2021, total assets grew by 11 percent in the period under review from N12.5 billion in September of 2020 to N14 billion in 2021. Also, its total equity grew by 12 percent from N8.2 billion to N9.2 billion in the third quarter of 2021.

 

Olaoton Soyinka, managing director and chief executive officer, while briefing newsmen on the company’s performance, said the result reflects the realities of the times and that the company is undaunted and will continue to remain focused in ensuring that the it keeps up with its obligations as a very dynamic and responsive corporate entity.

 

He also said the management of the company is committed to meeting and surpassing the expectations and aspirations of its shareholders and other stakeholders as the company remains focused on its strategic objective of accelerating the growth of the company through asset base, revenue, and profitability in the years ahead.

 

Meanwhile, the earnings per share of the underwriting firm increased from N5.28k in September 2020 to N6.18k in September 2021. Net assets per share also took a leap from 0.57k in the corresponding period of 2020 to 0.81k in the same period of 2021.
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Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

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