LAGOS, Nigeria — Veritas Kapital Assurance Plc recorded a pre-tax loss of ₦3.64 billion for the nine months ended September 30, 2026, compared with a pre-tax profit of ₦4.88 billion in the same period of 2025. The company said rising claims and reinsurance costs weighed on its underwriting performance.
The loss after tax was ₦3.84 billion, against a profit after tax of ₦4.12 billion a year earlier. Basic loss per share was 28 kobo, compared with earnings of 30 kobo.
Gross premium written fell 15% to ₦15.87 billion from ₦18.68 billion, and insurance revenue declined 6% to ₦15.41 billion from ₦16.31 billion.
The main pressure came from insurance service expenses, which doubled to ₦10.71 billion from ₦5.33 billion. Claims paid rose 196% to ₦8.25 billion from ₦2.78 billion. Acquisition costs and amortisation were broadly flat at ₦2.46 billion, so the increase was driven mainly by claims rather than spending to win new business.
Reinsurance costs added further strain. Net expenses from reinsurance contracts rose 68% to ₦7.39 billion from ₦4.40 billion. Reinsurance premiums allocated increased to ₦9.05 billion from ₦8.40 billion, while recoveries from reinsurers fell to ₦1.67 billion from ₦3.99 billion. As a result, the insurance service result before reinsurance fell 57% to ₦4.70 billion, and the company posted an insurance service loss of ₦2.68 billion after reinsurance.
Net investment income rose 34% to ₦3.51 billion from ₦2.61 billion. It included ₦764.30 million in interest income, ₦2.95 billion in other investment income, including a ₦2.01 billion fee linked to retirement savings assets, and a net fair-value gain of ₦290.30 million, partly offset by a net foreign exchange loss of ₦493.10 million. The investment income cushioned some of the underwriting losses but was not enough to offset them.
Total assets rose 54% to ₦54.56 billion from ₦35.40 billion, supported by investment securities held at amortised cost, which more than doubled to ₦25.64 billion, of which ₦24.87 billion were government bonds. Cash and cash equivalents rose to ₦10.17 billion from ₦7.98 billion.
Shareholders’ funds increased 60% to ₦30.59 billion, supported by a ₦15 billion private placement. Share capital rose to ₦14.43 billion from ₦6.93 billion. Retained earnings moved from a surplus of ₦1.56 billion to a deficit of ₦2.73 billion.
The Managing Director and Chief Executive Officer, Doctor Adaobi Nwakuche, said the nine-month performance reflected growth in the asset base, equity and investment income. She said the company’s focus is on strengthening its core insurance business, improving operational efficiency and meeting its obligations to policyholders.
