STI to lead positive changes in insurance market – Faloughi


Chairman of Sovereign Trust Insurance Plc, STI, Mr. Ephraim Faloughi said that the company will continue to assess its service platform  to ensure that they conform to the best in terms of global standards and are flexible enough to lead positive  changes in the market.
Faloughi who stated this at the company’s 20th annual general meeting in Lagos last week said that

the company recognise the rapid changing nature of their customers’ expectations and are aware of the imperative of embracing innovation and sound initiatives towards meeting their needs through bespoke services.

On the performance of the company, Faloughi said that, the company headline performance was somehow affected by the combination of the harsh operating terrain experienced in the course of the year and response to several regulatory interventions.
He said that gross premium for the year ended at N7.2 billion, a performance that represents 16 per cent decline over a sum of N8.6 billion recorded in the previous year. Profit before tax also declined by 62 per cent from N857.8 million recorded in the year 2013 to N326 million for the year ended 2014. In the same vein, profit after tax decreased by 68 per cent to close the year at N294 million from N929 million reported in 2013.
Faloughi said, “We believe that the future of the company is really bright particularly with the implementation of our new business model and deployment of competitive strategies to control better market share and improve our profit level. We will not rest on our oars towards realisation of our industry leadership ambition while keeping the company very profitable.”
On the future outlook, Faloughi said, “Moving forward, we understand the unprecedented dynamism of the business world. Accordingly, our strategic direction will be crafted to proactively envisage the likely opportunities that are inherent in the industry and work against possible threats that may adversely affect our operations.
“We have for long understood the role of our people in powering the growth objective of the company and would continue to put them at the heart of our operations.  We will also continue to equip and develop our staff to ensure that as individuals and collectively as a company, we are truly grounded in bringing to fruition the wealth creation objective which the company exist to provide for our shareholders.
“Similarly, capitalisation issue must be addressed headlong on a continuous basis. Beyond the just concluded rights issue, the board and management are continuously assessing several initiatives to competitively position the company in the industry capital wise. This we aim to achieve through a combination of organic and in-organic growth strategies and we will carry you along as we consider several options before us.
“The wave of entrance of international brands into the Nigerian insurance industry is going to be the game changer in the way we serve the market and administration of claims to customers,” Faloughi said.

Source: Vanguard newspaper