Veritas Kapital Assurance has reported a significant 86.5% increase in profit after tax to N3.05 billion in 2025, up from N1.63 billion in 2024. This growth is attributed to the company's stronger capital base, which has enabled it to navigate the challenging economic environment in Nigeria. The company's Chairman, Babatunde Irukera, announced this at its 49th yearly general meeting in Abuja.
Despite the profit increase, Veritas Kapital Assurance experienced declines in insurance revenue and total assets. Insurance revenue fell by 3% to N22.602 billion from N23.330 billion, while total assets declined by 9.6% to N29.877 billion from N33.060 billion. However, gross premiums written edged up marginally to N23.733 billion from N23.694 billion, indicating a relatively stable underwriting performance.
The company's capital position has improved significantly, with shareholders' equity increasing by 27% to N15.173 billion from N11.917 billion. This growth in capital is a result of the company's successful recapitalisation under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The stronger capital base is expected to enable Veritas Kapital Assurance to compete more effectively, take on larger and more complex risks, and maintain the required standards of corporate governance and financial stability.
Veritas Kapital Assurance's performance is notable in the context of Nigeria's insurance industry, which is adjusting to higher minimum capital requirements introduced under NIIRA 2025. The new regulations have raised the thresholds to N10 billion for life insurers, N15 billion for non-life operators, N25 billion for composite insurers, and N35 billion for reinsurers. The recapitalisation drive aims to strengthen insurers' capacity to absorb losses, underwrite larger risks, and improve their financial resilience.
The company's leadership was commended by shareholders at the meeting for navigating the prevailing economic challenges. Although no dividend was declared, shareholders welcomed the successful recapitalisation and the payment of claims during the year. The company's management expressed appreciation to shareholders for their support during the recapitalisation exercise and stated that it would use its strengthened capital base, workforce, and management experience to pursue growth opportunities and improve returns.
Veritas Kapital Assurance's results illustrate the importance of capital adequacy in the insurance industry. The company's performance highlights the need for insurers to balance premium growth, insurance revenue, asset quality, and the ability to generate sustainable underwriting profits. The company's stronger capital base has enabled it to absorb losses and underwrite larger risks, positioning it for future growth and stability.
The Nigerian insurance industry is expected to continue adjusting to the new capital requirements, with Veritas Kapital Assurance's performance serving as a benchmark for other insurers. The company's ability to navigate the challenging economic environment and improve its capital position demonstrates its resilience and commitment to financial stability. As the industry continues to evolve, Veritas Kapital Assurance is well-positioned to take advantage of growth opportunities and maintain its market presence.
Key points
- Veritas Kapital Assurance's profit after tax increased by 86.5% to N3.05 billion in 2025, driven by a stronger capital base.
- The company's capital position improved significantly, with shareholders' equity increasing by 27% to N15.173 billion.
- Veritas Kapital Assurance's performance highlights the importance of capital adequacy in the insurance industry, particularly in the context of Nigeria's new capital requirements.
