Nigerian insurer Veritas Kapital Assurance Plc posted a first-half loss after returning to annual profit in 2025, putting the durability of its earnings rebound in question despite later confirmation of its regulatory capital compliance.
In unaudited results for the six months ended June 30, 2026, the company recorded a ₦2.576 billion loss, compared with a ₦3.163 billion profit a year earlier. The group lost ₦1.871 billion, against a ₦3.598 billion profit in the first half of 2025.
The loss followed a turnaround in the audited annual accounts. The report’s summary puts company profit after tax at ₦3.047 billion for 2025, following a ₦1.635 billion loss in 2024. On a group basis, Veritas Kapital earned ₦4.036 billion after losing ₦1.093 billion the previous year.
Those figures warrant care in comparison. The annual report prints a −286% change for company profit because it uses the 2024 loss as the base for the calculation. The move into profit represents a ₦4.681 billion improvement, rather than a decline. The report also gives ₦3.037 billion as 2025 company profit in its detailed profit-and-loss statement, ₦9.283 million less than the figure in its summary.
Cash paid for claims and benefits rose to ₦10.723 billion in 2025 from ₦2.163 billion a year earlier. At the same time, recorded insurance service expenses fell to ₦3.442 billion from ₦18.590 billion. The report’s notes show lower incurred claims and an adjustment to claims from earlier periods that reduced the expense total. Company insurance revenue edged down to ₦22.603 billion from ₦23.330 billion.
The directors reported no dividend for 2025. Company equity increased to ₦15.173 billion at year-end from ₦11.918 billion, while assets declined to ₦29.877 billion from ₦33.061 billion.
Nigeria’s 2025 insurance law requires non-life insurers to maintain at least ₦15 billion in capital, or a higher risk-based amount set by the regulator. Veritas Kapital’s accounts recorded a ₦10.248 billion capital shortfall as of Dec. 31, 2025. The National Insurance Commission (NAICOM) subsequently included the insurer on its July 31, 2026, list of companies verified as compliant. Its next earnings report will show whether the first-half loss continued beyond June.
