Prime Business Africa
Veritas Kapital implemented a drastic cost-cutting measure that ensured a decline in its revenue did not prevent the company from halting its pretax loss and returning to profitability in 2025.
According to Prime Business Africa’s (PBA) analysis of the company’s unaudited financial statements for the period ended December 31, 2025, Veritas Kapital experienced a 3 percent decrease in turnover.
Join our WhatsApp ChannelThe company’s revenue declined to N22.57 billion last year, falling below the N23.31 billion generated between the first quarter (Q1) and fourth quarter (Q4) of 2024.
Veritas Kapital softened the impact of the turnover decline on its bottom line with an 81 percent year-on-year decrease in insurance service expense, which dropped N18.59 billion to N3.54 billion.
The insurer further supported its earnings with a 305 percent year-on-year increase in insurance service result before reinsurance contracts held, which surged to N19.13 billion, from N4.72 billion.
However, net expenses from reinsurance contracts held increased by 25 percent to N11.17 billion during the period under review, surpassing the N8.92 billion recorded in 2024.
Regardless, the company was able to squeeze out N7.92 billion as insurance service result in 2025, which is the difference between revenue and expenses, compared to the N4.2 billion loss recorded in 2024.
Veritas Kapital also survived a N597.42 million net foreign exchange loss between January and December 2925, failing to replicate the N5.08 billion FX gain reported during the same period the year before.
Also, the company suffered a 55.79 percent decline in net investment income, after reporting N4.03 billion during the period under review, compared to the N9.12 billion recorded in 2024.
The insurer’s path to profitability was also driven by a 264.48 percent surge in finance income from reinsurance contracts held, which outpaced the 198.35 percent increase in finance expenses.
According to the financial statement, finance income increased from N250.92 million in 2024 to N914.56 million in 2025, while finance expenses grew from N956.33 million to N2.85 billion during the same period.
However, this did not stop net insurance finance expense from skyrocketing from N705.41 million in 2024 to N1.93 billion last year, representing a 174.82 percent increase.
Although the company also saw a 138.29 percent increase in net insurance and investment result, which soared to N10.05 billion in 2025, exceeding the N4.22 billion recorded the previous year.
The bottom line was also boosted by a threefold increase in other operating income, which increased from N368 million to N1.33 billion, indicating a 263.13 percent growth year-on-year.
Prime Business Africa gathered that the other operating income growth overshadowed the 38.52 percent year-on-year increase in Veritas Kapital’s other operating expenses, as the latter grew from N5.21 billion to N7.22 billion.
Consequently, Veritas Kapital recorded N4.18 billion as profit before tax last year, recovering from the N627.54 million loss before tax reported in 2024.
It was gathered that the company paid N144.94 million as income tax in 2025, which is below the N465.31 million tax expense incurred the year before, reflecting a 69 percent decline.
Also, Veritas Kapital reported profit after tax (PAT) of N4.03 billion during the period under review, compared to the N1.09 billion reported in 2024.
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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.
