SOVEREIGN TRUST INSURANCE : EARNINGS FORECAST

SOVEREIGN TRUST INSURANCE PLC

PROFIT FORECAST FOR THE FIRST QUARTER 2023

PREMIUM INCOME	N'000
CLASS OF BUSINESS	MAR
MOTOR	1,587,600
FIRE	1,360,800
MARINE	708,960
GENERAL ACCIDENT	756,000
CAR/ENGINEERING	945,000
ENERGY BUSINESS	2,201,640
GROSS PREMIUM WRITTEN	7,560,000
PROVISION FOR UNEXPIRED RISK	(336,840)
REINSURANCE EXPENSES	(3,442,975)
NET PREMIUM EARNED	3,780,185
COMMISSION INCOME	593,599
NET UNDERWRITING INCOME	4,373,784
CLAIMS EXPENSES	(1,512,000)
CLAIMS RESERVE	(145,438)
CHANGE IN IBNR	(7,064)
REINSURANCE CLAIMS RECOVERED	128,897
NET CLAIMS INCURRED	(1,528,540)
ACQUISITION EXPENSES	(1,086,624)
UNDERWRITING EXPENSES	(278,644)
TOTAL UNDERWRITING EXPENSES	(1,365,268)
UNDERWRITING PROFIT	1,479,976
INVESTMENT INCOME	250,781
INCOME TAXES	(74,253)
FINANCE COST	(41,792)
MANAGEMENT EXPENSES	(1,140,421)
PROFIT BEFORE TAX	474,291