Sovereign Trust Reports Profit Growth, Sets N20bn Capital Raise Agenda

Sovereign Trust Insurance Plc has announced plans to seek shareholder approval to raise N20 billion in fresh capital at its 30th Annual General Meeting (AGM), scheduled for September 25, 2025.

In a notice filed with the Nigerian Exchange, the company explained that the capital raise could be executed through multiple channels, including public offers, private placements, or rights issues, either in Nigeria or international markets. Pricing will be determined via book-building or other valuation methods.

Shareholders will also decide on other key issues, including the proposed remuneration of Non-Executive Directors for the 2025 financial year, set at N10.5 million. Additionally, the AGM agenda will feature the presentation of the 2024 audited financial statements, alongside reports from the Directors, Auditors, and Audit Committee. The re-election of directors, as well as remuneration for managers and auditors, will also be tabled.

The Board has recommended a dividend of N0.05 per share (five kobo on every 50 kobo share), subject to withholding tax. Shareholders whose names appear in the Register of Members as of September 5, 2025, will qualify for payment upon approval.

Financial Performance

For the half-year ended June 30, 2025, the insurer posted a pretax profit of N1.5 billion, up from N1.1 billion in the same period of 2024. Revenue growth was a key driver, with insurance income rising 44.6% year-on-year to N34 billion. The company also recorded an insurance service result of N2.6 billion, compared to N2.2 billion a year earlier.

Investment income added N1.05 billion, slightly above the N1.02 billion earned in the prior period, further supporting profit growth after operating expenses and finance costs. Total assets stood at N28.2 billion, up from N27.9 billion, while retained earnings rose to N2.2 billion compared with N1.8 billion last year.

Market Performance

Sovereign Trust Insurance shares, traded under the ticker SOVRENINS, have recorded a remarkable 154% year-to-date performance in 2025, reflecting strong investor sentiment in the insurance sector.

The stock opened the year at N1.12, dipped to N1.00 in January, and slid further to N0.98 in the first quarter. A turnaround began in May, accelerating through June. The third quarter has been the strongest so far, with the stock surging over 112% on a trading volume of 710 million shares.

Analysts attribute this performance to the company’s solid fundamentals, profit growth, and optimism around the insurance sector’s resilience in Nigeria’s capital market.