Veritas Kapital Assurance swings to N3.16 billion pre-tax profit in 2025, as profit after tax rises 86%

Veritas Kapital Assurance Plc reported a significant improvement in its financial performance for the year 2025. The company's profit after tax soared to N3.046 billion, marking an impressive 86.4% increase from the N1.634 billion recorded in the previous year. This surge in profitability, coupled with a pre-tax profit of N3.156 billion, compared to a loss of N1.485 billion in 2024, paints a promising picture of the insurer's financial health.

The Chairman of the Board, Mr. Babatunde Irukera, unveiled these figures at the company's 49th Annual General Meeting (AGM) held in Abuja. He highlighted 2025 as a year filled with both challenges and opportunities. Irukera credited the recapitalisation under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 for bolstering the company's capital base, enhancing its underwriting capacity, and improving its overall financial resilience.

He also noted that this financial strengthening would enable Veritas Kapital to take on more significant and complex risks while maintaining its standards of governance, solvency, and financial stability.

The company's performance in 2025 was characterized by a slight increase in gross premium at N23.733 billion, only a marginal rise from N23.694 billion in the prior year. However, insurance revenue experienced a 3% decline, settling at N22.602 billion from N23.330 billion. Despite this, shareholders' equity surged by 27%, reaching N15.173 billion, thanks to the recapitalization effort. Total assets, however, saw a 10% decrease, standing at N29.877 billion, as compared to N33.060 billion in the previous year.

Irukera expressed gratitude to shareholders for their steadfast commitment, which he believed was instrumental in the company's transformation. The recapitalization, he noted, was a testament to the company's ability to emerge stronger, buoyed by a robust capital base, seasoned leadership, and a dedicated workforce. Looking ahead, Veritas Kapital plans to leverage its strengthened capital base, experienced leadership, and committed workforce to capitalize on emerging opportunities and solidify its position as one of Nigeria's leading non-life insurers.

The financial results, though showing a recovery from a low base, were overshadowed by a decline in revenue and a reduction in assets by 10%. However, NAICOM confirmed that Veritas Kapital, along with 43 other insurance and reinsurance companies, had met the July 31, 2026 recapitalization deadline. The 2025 results underscore the importance of a larger capital base in supporting bigger risks, but its value is contingent upon the underwriting side's profitability.