Veritas Kapital Assurance Plc has posted a stronger first-quarter financial performance for 2026, reporting a pre-tax profit of N1.8 billion in its unaudited results filed on the Nigerian Exchange, as growth in insurance revenue and core underwriting activities boosted earnings.
The company’s pre-tax profit rose by 13.62 per cent from N1.6 billion recorded in the corresponding period of 2025, supported by improved contributions from aviation, oil and gas, fire, and motor insurance businesses.
Insurance revenue for the quarter climbed to N5.3 billion, representing a 15.91 per cent year-on-year increase from N4.6 billion in Q1 2025.
A breakdown of the figures showed that aviation insurance remained the company’s strongest revenue driver, contributing N2.7 billion during the quarter, a 35 per cent increase year-on-year. Oil and gas insurance followed with N739.6 million, while other business lines also delivered notable contributions to earnings.
Fire insurance generated N449.02 million, motor insurance contributed N412.4 million, engineering insurance accounted for N312 million, while accident insurance added N236.7 million alongside contributions from other segments.
The company’s insurance service result rose sharply to N2.26 billion from N1.8 billion in the prior-year period, despite insurance service expenses of N2.1 billion and reinsurance expenses of N983.5 million.
On the investment side, Veritas Kapital Assurance recorded net investment income of N698.02 million, although this was lower than the N909.6 million reported in Q1 2025.
The decline was largely attributed to a significant increase in foreign exchange losses, which rose to N399.7 million compared to N22.01 million in the same period last year.
However, the company still benefited from strong contributions from other income sources and investment earnings. Other income stood at N818.5 million, driven mainly by Retirement Savings Account (RSA) asset-based fees valued at N606.4 million.
Investment interest income also contributed N248.7 million during the quarter, helping cushion the impact of the foreign exchange losses.
Overall, the combination of insurance operations and investment activities lifted the company’s net insurance and investment result to N2.9 billion, representing a 7.6 per cent increase from N2.7 billion recorded in Q1 2025.
After accounting for other operating income of N216.3 million and operating expenses of N1.2 billion, pre-tax profit settled at N1.8 billion.
Higher Tax Burden Impacts Bottom Line
Despite the improvement in operating performance, post-tax profit declined slightly as the company faced a significantly higher tax expense during the quarter.
Profit after tax came in at N1.5 billion, marginally below the N1.6 billion reported in the corresponding period of last year.
The decline was primarily due to tax expenses rising sharply to N349.8 million from N41.3 million in Q1 2025.
Balance Sheet Remains Strong
The company also recorded moderate growth across its balance sheet position.
Total assets increased to N37.2 billion from N35.3 billion, with investment securities measured at amortised cost emerging as the largest asset class at N10.7 billion.
Cash and cash equivalents followed closely at N9.7 billion, reflecting a relatively healthy liquidity position.
On the liabilities side, total liabilities rose slightly to N16.4 billion from N16.2 billion. Insurance contract liabilities accounted for the largest share of obligations, standing at N10.5 billion.
Shareholders’ funds also strengthened during the period. Retained earnings increased significantly to N2.8 billion from N1.5 billion, while total equity rose to N20.7 billion from N19.1 billion.
Market Yet to Fully React
Despite the stronger earnings performance, the company’s share price has yet to reflect investor enthusiasm on the Nigerian Exchange.
The stock slipped by 0.58 per cent to close at N1.70 following the release of the results.
However, market analysts believe investor attention may gradually shift toward the company’s improving fundamentals, particularly as the stock previously traded above the N2 mark in February 2026.
The latest results suggest that Veritas Kapital Assurance continues to strengthen its underwriting business and revenue base, although rising foreign exchange losses and increased tax obligations remain key pressures on profitability going forward.