Prime Business Africa
In the first quarter (Q1) of 2026, Veritas Kapital Assurance suffered a decline in gross premium, after recording N5.80 billion, below the N6.86 billion recorded during the corresponding period in 2025.
Veritas Kapital’s gross premium dropped by 15 percent, according to Prime Business Africa’s (PBA) analysis of the company’s consolidated and separate financial statements for the period ended March 31, 2026.
While the company’s gross premium declined by double-digit, revenue grew by 16 percent to N5.37 billion during the period under review, compared to the N4.63 billion generated in the first quarter of last year.
Join our WhatsApp ChannelVeritas Kapital also saw a 229 percent surge in Insurance service expense in the first three months of this year, after incurring N2.11 billion, against the N644.39 million expended in same period in 2025.
This led to insurance service result before reinsurance contracts held declining by 18 percent to N3.25 billion in Q1 2026, below the N3.98 billion recorded between January and March of the year before.
Net expenses from reinsurance contracts held costs Veritas Kapital N983.58 million in the first quarter of 2026, down by 54 percent when compared to the N2.14 billion gulped in the first three months of 2025.
This supported insurance service result, as it increased by 22.90 percent year-on-year, from N1.84 billion to N2.26 billion, according to the company’s financial statement.
However, the company’s financials was weakened with a 1,715.94 percent increase in Veritas Kapital’s net foreign exchange loss, which increased to N399.76 million in Q1 of this year, above the N22.01 million suffered in Q1 2025.
This impacted net investment income, as the insurer recorded N698.02 million in the first quarter of 2026, down by 23.27 percent compared to the N909.69 million earned in the same period the previous year.
However, net insurance and investment result grew to N2.96 billion in the first three months of this year, surpassing the N2.75 billion achieved in Q1 2025, representing a 7.66 percent growth.
Other operating income surged 35.21 percent during the period under review to N216.31 million, exceeding the N159.98 million reported in the first quarter of 2025.
In addition, other operating expenses grew slowly by 3.29 percent from the N1.25 billion reached in the first three months of last year to N1.29 billion the corresponding period in 2026.
Profit before tax (PBT) soared to N1.88 billion between January and March 2026, surpassing the N1.65 billion pretax profit reported by Veritas Kapital in Q1 2025.
However, there was a significant increase in the insurance company’s tax expense, which incurred N349.87 million in Q1 2026, compared to the N41.32 million tax charge reported in the same period last year.
The 747 percent increase in tax charge resulted in Veritas Kapital’s profit after tax (PAT) slumping to N1.53 billion in the first quarter of this year, dropping by 5 percent when compared to the N1.61 billion reached in Q1 2025.
Note that in 2025, Veritas Kapital implemented a drastic cost-cutting measure to return to profitability.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
