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Earnings remain sound although were impacted by pressures on underwriting performance. In 2023, the insurer registered a review period high combined ratio of 102.2% compared to a three-year cross-cycle combined ratio of 90.7%, largely due to a considerably higher claim ratio of 37.0% (2022: 20.1%). This is attributed to a major claim reported in the property business during the year.

STI’s strong risk-adjusted capitalisation is a major rating strength, supported by a sizable capital base relative to assumed risk exposures. As of 31 December 2023, shareholders' funds grew by 30.5% to NGN13.5 billion (USD 23.1 million), underpinned by earnings accretion and conservative dividend payout over the last five years. Consequently, the GCR capital adequacy ratio strengthened to 3.1% in December 2023 (31 December 2022: 3.0%), although moderated to 2.2x as of 30 September 2024 as the growth in aggregate risk exposures outpaced internal capital generation.