Veritas Kapital Assurance Plc reported a profit before tax of N1.8 billion for Q3 2025, exceeding its Q3 forecast of N867 million and marking a sharp turnaround from the N2.8 billion loss recorded in Q3 2024.
This brings the company’s nine-month pre-tax profit to N4.88 billion, up 64% from the N2.97 billion recorded in 9M 2024.
According to the unaudited results, insurance revenue declined by 40% to N3.73 billion from N6.19billion in Q3 2024.
However, 9-month insurance revenue grew by 1.3% YoY to N16.31 billion.
Key Highlights (Q3 2025 vs. Q3 2024)
- Insurance Revenue: N3.73 billion (Down 40% YoY from N6.19 billion)
- Insurance Service Expenses: N6.02 billion (Down 44% YoY from N10.75 billion)
- Net Investment Income: N717.1 million (Down 0.5% YoY from N720.4 million)
- Net Insurance and Investment Result: N2.54 billion (vs. N-3.05 billion in Q3 2024)
- Other Operating Income: N180.8 million (vs. N1.47 billion in Q3 2024)
- Other Operating Expenses: N1.54 billion (vs. N1.23 billion in Q3 2024)
- Profit for the Period: N526.4 million (vs. N-2.3 billion loss in Q3 2024)
- Basic Earnings per Share (EPS): N0.08 (vs. N-0.33 in Q3 2024)
- Total Assets: N36.36 billion (Down 3.2%)
- Total Equity: N19.47 billion (Up 27% from N15.29 billion in Dec 2024)
Management commentary
Speaking of the results, the Managing Director/CEO, Dr. Adaobi Nwakuche, described the performance as “a reflection of purpose translated into progress.”
She continued, “We see these results as validation that when an organization aligns its strategy with its values, growth becomes inevitable. Every milestone we achieve is built on trust—the trust of our customers, brokers, partners, and our people, who continue to give their best every day.”
The drivers
The strong bottom-line performance was largely driven by a N2.5 billion net insurance and investment result, a major improvement from the N3 billion loss recorded in Q3 2024.
One of the main factors contributing to the rebound was a sharp drop in insurance expenses.
- Veritas Kapital succeeded in streamlining operations and improving cost efficiency, leading to a 62% reduction in insurance service expenses, from N10.75 billion in Q3 2024 to N6.02 billion in Q3 2025.
- This reduction helped offset the negative impact of a decline in insurance revenue.
Another crucial driver was the positive net expense from reinsurance contracts held.
- In simple terms, this means Veritas Kapital received more money back from its reinsurers than it paid in premiums.
This recovery from reinsurance helped to offset the higher claims payout and contributed positively to the net insurance and investment result.
By sharing its risk with reinsurers, Veritas Kapital was able to reduce its exposure to large claims, which improved its overall profitability.
This helped smooth out the financial impact of claims while also improving the company’s cash flow.
Balance sheet:
As of September 2025, Veritas Kapital’s total assets stood at N36.36 billion, a slight decline from N37.54 billion in the previous year (2024).
- This decrease in total assets primarily reflects a decline in cash and cash equivalents, but the company remains financially stable with significant assets backing its operations.
On the liability side, the real highlight was the 27% increase in total equity, which rose to N19.47 billion, up from N15.29 billion in December 2024.
- Shareholders’ funds have been positively driven by share capital, which remained stable at N6.93 billion
- Also, the impressive growth in equity reflects improved profitability as retained earnings stood at N2.1 billion compared to retained losses of N1.2 billion as of December 2024.
Dr. Nwakuche emphasized, “Our growth in equity reflects the strength of our operational strategies and the trust our investors place in us. With a solid equity base, we are positioned to continue investing in our business and our people.”
Share performance
Veritas Kapital began the year with a share price of N1.36, and as of November 7, 2025, its share price rose to N1.85, reflecting a 36% increase in valuation.
Bottomline
Veritas Kapital’s strong performance in Q3 2025. Despite a decline in insurance revenue, the company’s reduced expenses and positive reinsurance recoveries played a critical role in its return to profitability.
