Prime Business AfricaVeritas Kapital recorded N6.86 billion as gross premium written in the first quarter (Q1) of 2025, a marginal increase compared to the N6.44 billion reported in Q1 of 2024.
The insurance company announced in its consolidated and separate unaudited financial statements for the period ended March 31, 2025.
Join our WhatsApp ChannelHowever, Veritas Kapital’s insurance revenue plunged to N4.63 billion in the period under review, dropping by 27 percent from the N6.37 billion posted in Q1 last year, with insurance service expense decreasing significantly to N644.39 million, from N2.68 billion within the same period.
The decline in incurred expenses enabled Veritas Kapital to squeeze out an 8 percent increase in insurance service result, which reached N3.98 billion – before accounting for reinsurance contracts – in Q1 2025, up from N3.68 billion recorded in Q1 2024.
But after accounting for expenses on reinsurance contracts held, the insurance service result fell to N1.84 billion from N2.12 billion, as expenses on reinsurance contracts gulped N2.14 billion, up from N1.55 billion.
The 13.16 percent decrease in insurance service result and the 37 percent increase in expenses on reinsurance contracts impacted the bottom line, as profit before tax (PBT) nosedived significantly by 73 percent in Q1 this year.
According to the company’s financials, profit before tax fell to N1.65 billion in the first quarter of this year, falling short of the N6.21 billion recorded in the corresponding period last year.
Consequently, Veritas Kapital’s tax expense decreased to N41.32 million during the period in review, which is 92 percent lower than the N543.15 million surcharge in the previous year’s Q1.
Following the tax deduction, Veritas Kapital reported profit after tax (PAT) of N1.61 billion at the end of the first quarter, failing to surpass the N5.67 billion achieved in Q1 2024, reflecting a 71 percent decline.
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