Veritas Kapital Assurance Plc has signalled a period of operational scaling, according to its latest earnings forecast filed with the Nigerian Exchange for the second quarter ending 30 June 2026. The insurer projected Insurance Revenue of N6.18bn for the period.
While the forecast includes a projected net cash decrease of N4.65bn, the company maintains that this is a deliberate strategic movement aimed at scaling its core business segments and meeting the rising demands of the Nigerian insurance market.
Despite the projected cash outflow, driven primarily by N5.11bn in operating activities, the company expects to close the half-year with a healthy cash and bank balance of N3.60bn, ensuring it remains highly liquid as it enters the second half of 2026.
The leadership team emphasised that these figures reflect a company preparing to absorb higher volumes of corporate and retail business following the industry-wide reforms of the Nigerian Insurance Industry Reform Act 2025.
Speaking on the projections, the Managing Director/CEO of Veritas Kapital Assurance Plc, Adaobi Nwakuche, said, “Our Q2 projections reflect a deliberate strategy to deploy our resources where they matter most, protecting our policyholders and expanding our footprint. The projected insurance revenue of N6.18bn is a testament to the trust the market is placing in our brand. While we forecast a temporary dip in cash equivalents due to scaling our operations, we are doing so from a position of immense balance sheet strength.”
The company’s bottom-line projections remain strong, with a focused approach to managing the rising costs of claims in an inflationary environment. Specifically, the insurer expects a Profit After Tax of N788.87m, while the Insurance Service Result is projected at N1.67bn after accounting for reinsurance costs. Furthermore, Net Investment Income is forecasted at N314.65m, highlighting the resilience of its investment portfolio.
To insulate itself from the “risk cover crisis” currently affecting the broader financial ecosystem, Veritas Kapital has allocated N2.18bn towards reinsurance contracts. This move is designed to mitigate exposure to high-value industrial claims and unforeseen economic shocks.
“Efficiency and risk-informed decision-making are at the core of our 2026 roadmap. By balancing our N2.33bn in projected service expenses with a strengthened reinsurance shield, we are ensuring that Veritas Kapital remains not just a leader in growth, but a bastion of stability for our investors,” added Mojeed Somorin, Chief Financial Officer.
As the 31 July recapitalisation deadline approaches, Veritas Kapital’s “Celebrating Growth” phase appears to be in full swing, with the insurer positioning itself as a top-tier player capable of underwriting the massive industrial projects being funded by Nigeria’s recapitalised banking sector.
