Veritas Kapital Assurance’s earnings surge more than fourfold in H1

The earnings of Veritas Kapital Assurance Plc, surged by 372.7 percent in the first half of 2024, a BusinessDay analysis has shown.

According to the group’s latest financial statement, its after-tax profit rose to N5.2 billion in the first six months from N1.1 billion in the same period of last year.

The company’s profit for owners’ of the parent company/shareholders during the period rose to N4.6 billion from N959.2 million while non-controlling interests increased to N622 million from N130.8 million.

Further breakdown of the company’s financial statement disclosed that the its insurance revenue for the period grew by 350 percent to N9.9 billion from N2.2 billion, driven by higher rate of insurance from aviation and Oil & gas sector.

Insurance revenue generated from aviation increased to N9.8 billion from N562 million, revenue from oil & gas also increased to N1.4 billion from N3.5 million.

Its insurance service expenses increased to N3.2 billion from N1.6 billion while net expenses from reinsurance contacts held grew to N4.7 billion from N1.02 billion.

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Net foreign exchange gain amounted to N14.1 billion in the period under review from N1.4 billion recorded in the same period of 2023 while the Net investment income rose to N5.8 billion from N2.6 billion.

Net insurance and investment resulted into N7.7 billion from N2.3 billion.

The insurance company’s total assets rose to N34.8 billion in the first six months from N24.6 billion in the same period of 2023 while total liabilities rose to N13.3 billion from N8.3 billion.

Cash and cash equivalent for the period increased to N10.2 billion from N6.6 billion. Its reinsurance contract assets grew to N4.6 billion from N1.6 billion.

Veritas Kapital Assurance, formerly known as UnityKapital Assurance Plc, was incorporated in 1973 as a private liability Company under the name, Kano State Insurance Company.

The company was registered as a general business company; this move was endorsed and approved by the National Insurance Commission (NAICOM) and offers non-life Insurance products and services to individuals and institutions across Nigeria.