Veritas Kapital Assurance, formerly Unity Kapital Assurance, has announced that it recorded 38 percent more gross written premium in 2018 than it did in the preceding year. Figures in the insurer’s financials show a 5-year high.
The insurance company revealed in its 2018 audited financials that it received a total gross premium of N3.33 billion for its group compared to N2.41 billion in 2017 while the company realised N3.24 billion, 40 percent over 2017 figures.
Veritas Kapital, however, couldn’t shake off its weak performance from 2017 as bottom-line remained in the negative in 2018, although losses pared by 1 percent.
Loss after taxation in the recently concluded financial year stood at N695.25 million as against N700.64 million posted in 2017 on the heels of Veritas Kapital’s management expense and higher income tax.
The management, however, pointed out that while 2018 was a tough year for insurance businesses, Veritas Kapital predicts premium would rise 5.7 percent in 2019 in USD terms.
Net premium of the insurer rose year on year by 16 percent to hit N2.1 billion while net claim incurred dropped by 38 percent, with Veritas Kapital expending N736 million in 2018 compared to N1.2 billion in 2017. Underwriting expenses rose by 3 percent to N562 million.
As a result, underwriting profit skyrocketed by 778 percent year on year to N897 million.
Among other items, investment income saw a 2 percent uptick of to N1.49 billion, operating income rose by 81 percent, impairments of financial assets declined by 75 percent while finance cost was N1.15 million.
A 41 percent spike in management expense bit hard on earnings while a 204 percent increase in tax expense exacerbated loss as Veritas Kapital posted a loss of N695.25 million.
Veritas Kapital ( then UnityKapital) was created from the merger of Global Commerce and General Insurance Plc, Intercontinental Assurance Plc and Kapital Insurance Company Limited in 2005 following insurance regulation of 2005 which required insurance companies to recapitalised to the level of N3 Billion Naira for Non –life companies and N 2 billion Naira for Life companies.
In a notice sent to the exchange and dated March 14, 2018, Veritas Kapital announced the divestment of Unity Bank Plc’s holding in the insurance company and the change of name from UnityKapital Assurance Plc to Veritas Kapital Assurance Plc.
Shares of Veritas Kapital currently trades at 21 kobo per share as at the close of trading on Friday.
SEGUN ADAMS
