Veritas Kapital Assurance Plc recorded a pre-tax loss of N3.64 billion for the nine months ended September 30, 2026, compared with a pre-tax profit of N4.88 billion in the corresponding period of 2025, as rising claims and reinsurance costs weighed on underwriting performance.
Despite the earnings setback, the insurance company strengthened its financial position, with total assets growing by 54% to N54.56 billion from N35.40 billion, while shareholders’ funds increased by 60% to N30.59 billion.
According to the company’s unaudited financial statements, the group’s loss after tax (LAT) stood at N3.84 billion, compared with a profit after tax of N4.12 billion in 9M 2025.
This occurred as gross premium written fell 15% to N15.87 billion from N18.68 billion, while insurance revenue declined 6% to N15.41 billion from N16.31 billion.
Commenting on the results, the Managing Director/Chief Executive Officer, Dr. Adaobi Nwakuche, said:
One of the most notable developments in Veritas Kapital Assurance’s nine-month performance was the expansion of its asset base and shareholders’ funds, even as rising underwriting costs pushed the company into a loss.
Total assets increased by 54% to N54.56 billion, supported by growth in investment securities and cash balances.
The capital injection represents a significant development for the company’s financial position, providing a stronger equity base even as accumulated earnings came under pressure.
Another positive development was the 34% increase in net investment income to N3.51 billion from N2.61 billion.
A significant component of other investment income was an N2.01 billion RSA asset-based fee.
These income streams provided an important cushion against underwriting losses, although they were insufficient to offset the combined impact of claims, reinsurance expenses and other operating costs.
The main challenge during the period came from insurance service expenses, which increased by 101% to N10.71 billion from N5.33 billion.
This indicates that the deterioration in underwriting performance was driven principally by higher claims rather than increased customer acquisition spending.
Reinsurance premiums allocated increased to N9.05 billion from N8.40 billion, while recoveries from reinsurers declined to N1.67 billion from N3.99 billion.
