{"id":16764,"date":"2026-11-13T10:30:53","date_gmt":"2026-11-13T10:30:53","guid":{"rendered":"https:\/\/globalnigerianews.com\/index.php\/2026\/11\/13\/veritas-kapital-assurance-grows-assets-by-54-to-n54-56-billion-despite-9m-2026-loss\/"},"modified":"2026-11-13T10:30:53","modified_gmt":"2026-11-13T10:30:53","slug":"veritas-kapital-assurance-grows-assets-by-54-to-n54-56-billion-despite-9m-2026-loss","status":"publish","type":"post","link":"https:\/\/globalnigerianews.com\/index.php\/2026\/11\/13\/veritas-kapital-assurance-grows-assets-by-54-to-n54-56-billion-despite-9m-2026-loss\/","title":{"rendered":"Veritas Kapital Assurance grows assets by 54% to N54.56 billion despite 9M 2026 loss\u202f"},"content":{"rendered":"<p>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.<\/p>\n<p>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\u2019 funds increased by 60% to N30.59 billion.<\/p>\n<p>According to the company\u2019s unaudited financial statements, the group\u2019s loss after tax (LAT) stood at N3.84 billion, compared with a profit after tax of N4.12 billion in 9M 2025.<\/p>\n<p>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.<\/p>\n<h4><strong>CEO\u2019s comments:\u202f<\/strong><\/h4>\n<p>Commenting on the results, the Managing Director\/Chief Executive Officer, Dr. Adaobi Nwakuche, said:<\/p>\n<ul>\n<li><em>\u201cOur nine-month performance reflects notable developments in our financial position, particularly the growth in our asset base, equity position and investment income.\u202f<\/em><\/li>\n<li><em>\u201cAs we continue to build on these gains, our focus remains on strengthening our core insurance business, enhancing operational efficiency and improving overall business performance.\u202f<\/em><\/li>\n<li><em>\u201cOur commitment to meeting our obligations to policyholders remains central to our business as we work towards delivering sustainable value to all stakeholders.\u202f<\/em><\/li>\n<\/ul>\n<h4><strong>Key highlights (9M 2026 vs 9M 2025)\u202f<\/strong><\/h4>\n<blockquote>\n<ul>\n<li>Gross premium written: N15.87 billion (-15% YoY)<\/li>\n<li>Insurance revenue: N15.41 billion (-6% YoY)<\/li>\n<li>Insurance service expenses: N10.71 billion (+101% YoY)<\/li>\n<li>Claims paid: N8.25 billion (+196% YoY)<\/li>\n<li>Net expense from reinsurance contracts: N7.39 billion (+68% YoY)<\/li>\n<li>Insurance service result: N2.68 billion loss<\/li>\n<li>Net investment income: N3.51 billion<\/li>\n<li>Other operating expenses: N5.16 billion (+6% YoY)<\/li>\n<li>Profit before tax (PBT): N3.64 billion loss (vs N4.88 billion profit)<\/li>\n<li>Profit after tax (PAT): N3.84 billion loss (vs N4.12 billion profit)<\/li>\n<li>Basic earnings per share: -28 kobo (vs 30 kobo)<\/li>\n<li>Total assets: N54.56 billion (+54%)<\/li>\n<li>Shareholders\u2019 funds: N30.59 billion (+60%)<\/li>\n<\/ul>\n<\/blockquote>\n<h4><strong>Driving the numbers\u202f<\/strong><\/h4>\n<p>One of the most notable developments in Veritas Kapital Assurance\u2019s nine-month performance was the expansion of its asset base and shareholders\u2019 funds, even as rising underwriting costs pushed the company into a loss.<\/p>\n<h4><strong>Stronger capital position and growing investment portfolio\u202f<\/strong><\/h4>\n<p>Total assets increased by 54% to N54.56 billion, supported by growth in investment securities and cash balances.<\/p>\n<ul>\n<li>Investment securities held at amortised cost more than doubled to N25.64 billion from N12.45 billion, with government bonds accounting for N24.87 billion of the closing balance.<\/li>\n<li>Cash and cash equivalents also increased to N10.17 billion from N7.98 billion, reflecting a stronger cash position at the reporting date.<\/li>\n<li>Shareholders\u2019 funds rose by 60% to N30.59 billion, supported by a N15 billion private placement.<\/li>\n<li>Consequently, share capital increased to N14.43 billion from N6.93 billion, while share premium rose to N8.16 billion from N663.6 million.<\/li>\n<\/ul>\n<p>The capital injection represents a significant development for the company\u2019s financial position, providing a stronger equity base even as accumulated earnings came under pressure.<\/p>\n<ul>\n<li>Retained earnings moved from a positive N1.56 billion to a deficit of N2.73 billion, highlighting the impact of the period\u2019s losses.<\/li>\n<\/ul>\n<h4><strong>Investment income provides support\u202f<\/strong><\/h4>\n<p>Another positive development was the 34% increase in net investment income to N3.51 billion from N2.61 billion.<\/p>\n<ul>\n<li>The growth demonstrates the contribution of the company\u2019s investment activities to its overall financial performance.<\/li>\n<li>Net investment income included N764.3 million in interest income, N2.95 billion in other investment income and a N290.3 million net fair-value gain, partly offset by a N493.1 million net foreign exchange loss.<\/li>\n<\/ul>\n<p>A significant component of other investment income was an N2.01 billion RSA asset-based fee.<\/p>\n<ul>\n<li>Interest on statutory deposits contributed N477.3 million, while short-term deposits generated N437.1 million.<\/li>\n<li>Treasury bills and dividend income contributed N8.7 million and N14.4 million, respectively.<\/li>\n<\/ul>\n<p>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.<\/p>\n<h4><strong>Claims and reinsurance costs weigh on underwriting performance\u202f<\/strong><\/h4>\n<p>The main challenge during the period came from insurance service expenses, which increased by 101% to N10.71 billion from N5.33 billion.<\/p>\n<ul>\n<li>Claims paid rose by 196% to N8.25 billion from N2.78 billion, accounting for much of the increase in underwriting costs.<\/li>\n<li>In contrast, acquisition costs and amortisation were relatively stable at N2.46 billion, compared with N2.55 billion in the corresponding period.<\/li>\n<\/ul>\n<p>This indicates that the deterioration in underwriting performance was driven principally by higher claims rather than increased customer acquisition spending.<\/p>\n<ul>\n<li>As a result, the insurance service result before reinsurance declined by 57% to N4.70 billion from N10.98 billion.<\/li>\n<\/ul>\n<h4><strong>Reinsurance costs added to the pressure.\u202f<\/strong><\/h4>\n<p>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.<\/p>\n<ul>\n<li>Consequently, net expenses from reinsurance contracts rose by 68% to N7.39 billion from N4.40 billion, resulting in an insurance service loss of N2.68 billion.<\/li>\n<\/ul>\n<p>Source: <\/p>\n<div class=\"nSourse\">Nairametrics<\/div>\n","protected":false},"excerpt":{"rendered":"<p>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&hellip; <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-16764","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/16764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=16764"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/16764\/revisions"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=16764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=16764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=16764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}