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.
Insurance revenue rose during the year, largely supported by higher premiums, reaching N46.2 billion, up 9.96% from the previous year.
Despite the revenue growth, profitability declined sharply as cost pressures intensified.
Investment income remained relatively stable at N1.5 billion, driven by interest income and fair value gains on financial assets.
As a result, operating profit fell to N1.02 billion from N2.6 billion in 2024, with no impairment charges recorded.
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.
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.