Veritas Kapital Assurance Plc has reported a pretax profit of N1.8 billion in its Q1 unaudited financial statements filed on the Nigerian Exchange.
This represents a 13.62% increase from N1.6 billion in the same period last year, supported by a stronger insurance revenue base across its core operations.
Insurance revenue rose to N5.3 billion from N4.6 billion in Q1 2025, driven mainly by aviation insurance at N2.7 billion (up 35% year-on-year), oil and gas at N739.6 million, and other segments.
With N698.02 million in net investment income, earnings translated into a post-tax profit of N1.5 billion, slightly below the N1.6 billion recorded in the prior year, as higher tax expenses weighed on the bottom line.
Key highlights (Q1 2026 vs Q1 2025)
- Insurance revenue: N5.3 billion, up 15.91% YoY
- Insurance service result: N2.2 billion, up 22.90% YoY
- Net foreign exchange loss: N399.7 million vs N22.01 million
- Net investment income: N698.02 million vs N909.6 million
- Net insurance and investment result: N2.9 billion, up 7.6% YoY
- Pretax profit: N1.8 billion, up 13.62% YoY
- Tax expense: N349.8 million vs N41.3 million
- Post-tax profit: N1.5 billion vs N1.6 billion
- Retained earnings: N2.8 billion vs N1.5 billion
Driving the numbers
A closer look shows that, apart from aviation insurance of N2.7 billion and oil and gas insurance of N739.6 million, which were the largest contributors to the N5.3 billion insurance revenue, other lines also played key roles.
- Fire insurance contributed N449.02 million, motor insurance N412.4 million, engineering N312 million, and accident insurance N236.7 million, alongside other segments.
After insurance service expenses of N2.1 billion and reinsurance expenses of N983.5 million, insurance service results settled at N2.26 billion, up from N1.8 billion.
On the investment side, other income of N818.5 million, largely driven by Retirement Savings Account (RSA) asset-based fees of N606.4 million, made the strongest contribution.
Despite an FX loss of N399.7 million, investment interest income of N248.7 million combined with other income to deliver net investment income of N698.02 million.
- The combination of net insurance and net investment results produced a net figure of N2.9 billion for Q1 2026, higher than N2.7 billion in the prior year.
After other operating income of N216.3 million and other expenses of N1.2 billion, pretax profit settled at N1.8 billion, up from N1.6 billion.
Post-tax profit came in at N1.5 billion, down from N1.6 billion, as tax expenses rose significantly from N41.3 million to N349.8 million.
Balance sheet
On the balance sheet, total assets grew to N37.2 billion from N35.3 billion, with ‘investment securities at amortised cost’ of N10.7 billion as the largest component. Cash and cash equivalents followed, at N9.7 billion, as the second-largest contributor.
Total liabilities rose slightly to N16.4 billion from N16.2 billion, with insurance contract liabilities of N10.5 billion accounting for the bulk of the obligations.
On the equity side, retained earnings increased to N2.8 billion from N1.5 billion, while total equity rose to N20.7 billion from N19.1 billion.
Market reaction
On the Nigerian Exchange, shares of the company have yet to react to the stronger financial performance, slipping 0.58% to a low of N1.70.
However, the market may begin to reprice the stock at lower levels, with attention potentially shifting toward a prior high above N2 recorded in February 2026.
