Veritas Kapital Assurance success in agriculture boosts growth

Veritas Kapital Assurance Plc has posted Gross premium amounting to N6, 063, 203 for the year, 2020 financial year, which translates to 105 percent growth when compared to N2, 953, 792 recorded in the 2019.

While the Underwriting Profit accounted N1,203, 658 for the year under review, it recorded 12 percent increase as against N1,076, 778 achieved in 2019.

Thomas Etuh, chairman, Board of Directors, Veritas Kapital Assurance, made the disclosures at the 44th Annual General Meeting of the company held in Abuja, Monday at its Corporate Headquarters.

He noted that despite the economic downturn caused by the Covid-19 pandemic last year, the company through reengineering restrategized focus on Agricultural insurance business which premium accounted for the largest chunk of the premiums.

According to the company’s annual report for the year, premium earned in agriculture business insurance accounted for N3, 399, 883 as against N502.997 million in 2019.

While its Profit After Tax is N740.931 million, as against N123.422 million recorded in 2019, total assets increased to N13, 057,787 from N11,146,383 in 2019.

Read Also: ARM, AXA, Veritas Pensions lead other 18 PFAs in Year to Date returns in Fund II

While responding to questions, the Chairman explained that the company is on continuing part of profitability going by the risk management structures put in place, adding that within the next two to three years, the shareholders will be assured of dividends.

Also speaking, Kenneth E. Egbaran, managing director, said the success story was achieved through collective efforts of the Board, management and staff of the company.

He said: “With this pace, our 2021 record will be better. It is when all the fundamentals are in right place that we can now begin to expect dividends.

“But meanwhile, we are ploughing back our profits on further investments so that in terms of recapitalization, we will not be caught unawares.”

He explained that the company is being cautious in delving into some very risky business in order to end up paying claims with shareholders’ funds.

He assured the insuring publics of prompt payment of claims, pointing out that the company have not recorded any fine in terms of any shortcoming in corporate governance and payment of claims by the regulatory authorities.

Earlier, shareholders including, Abdullahi Kabiru and Patrick Ajudua, applauded the board and management of the company for steering the ship of the company out of losses to profitability levels.

They noted that the shareholders were pleased with the present track records including good corporate governance, prompt payment of claims, increased growth in Agriculture business insurance premiums among others.

However, the shareholders urged the National Insurance Commission (NAICOM) to intensify efforts in enlightenment campaigns on the need for the public to embrace insurance.