May 07, (THEWILL) — Veritas Kapital Assurance Plc recorded a pretax profit of ₦1.8 billion in the first quarter of 2026, buoyed by strong growth in aviation insurance and improved earnings from core underwriting operations.
According to the company’s unaudited financial statements filed on the Nigerian Exchange, pretax profit rose by 13.62 percent from ₦1.6 billion recorded in the corresponding period of 2025.
Insurance revenue climbed to ₦5.3 billion, representing a 15.91 percent year-on-year increase from ₦4.6 billion, with aviation insurance emerging as the biggest contributor. Revenue from the segment surged 35 percent to ₦2.7 billion, while oil and gas insurance contributed ₦739.6 million.
Other business lines also supported growth, including fire insurance at ₦449 million, motor insurance at ₦412.4 million, engineering insurance at ₦312 million, and accident insurance at ₦236.7 million.
Following insurance service expenses of ₦2.1 billion and reinsurance expenses of ₦983.5 million, insurance service results rose to ₦2.26 billion from ₦1.8 billion in the prior year.
On the investment side, the insurer generated ₦698 million in net investment income despite recording a foreign exchange loss of ₦399.7 million, significantly higher than the ₦22 million FX loss posted a year earlier. Other income stood at ₦818.5 million, driven largely by Retirement Savings Account asset-based fees of ₦606.4 million.
Combined insurance and investment activities lifted net insurance and investment results to ₦2.9 billion, up from ₦2.7 billion in Q1 2025.
However, higher tax obligations weighed on final earnings. Tax expenses jumped to ₦349.8 million from ₦41.3 million, resulting in a post-tax profit of ₦1.5 billion, slightly below the ₦1.6 billion reported last year.
The company’s balance sheet remained solid, with total assets rising to ₦37.2 billion and shareholders’ equity increasing to ₦20.7 billion. Despite the stronger earnings performance, Veritas Kapital shares slipped 0.58 percent on the Nigerian Exchange to close at ₦1.70.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
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