Veritas Kapital Assurance, Nigeria’s foremost insurance company, has declared an astounding 1,101% increase in net profit for the 2023 fiscal year, representing a remarkable surge from N193.93 million for the previous year to N2.33 bn.
Mr Nahim Ibraheem, Chairman of Veritas Kapital’s Board of Directors, stated this on Tuesday at the company’s 47th Annual General Meeting (AGM) in Abuja. According to him, the performance was a reflection of the company’s unwavering commitment to enhancing shareholders’ value and revolutionising its business offerings and brands to deliver a consummate customer experience.
“During the year under review, your company also remained resilient by recording 67 per cent growth in Gross Premium to N7.298 bn from N4.369 bn in 2022. Insurance revenue also grew by 41 percent to N7.1 bn in 2023 from N5.04 bn in 2022.
“Also showcasing resilience, the company’s Profit Before Tax (PBT) grew to N2.417 bn in 2023 from N221.5 million in 2022, a growth rate of 991 percent,” he explained.
However, the Chairman said negative global and domestic economic realities were some challenges the leadership of the company had to contend with in steering affairs of the company during the period.
“Dubbed the year of resilience by analysts and economic observers alike, the growth of global economy in 2023 was indeed nothing short of miraculous, as elevated inflation and other aggressive headwinds diminished global economic growth. In the domestic economy, a keyword that continued to make the rounds in policy, business and consumer circles in 2023 was inflation, he stated.
“High inflation in 2023,according to analysts, was largely precipitated by the sweeping market reforms being implemented by the current administration since transition to new government in May 2023. From domestic standpoint, removal of fuel subsidy, which caused the price of petrol to rise by 220 percent in November 2023, as well as the depreciation of the Naira by over 50 percent also contributed to it.
“Despite the limitation in consumer spending, the Nigerian insurance sector continued to showcase its resilience. According to the National Insurance Commission (NAICOM), the industry crossed the One Trillion Naira premium forecast in full-year 2023, compared to N726 billion recorded in 2022, a growth of 27 percent,” he said.
Dr. Adaobi Nwakuche, Managing Director of Veritas Kapital Assurance Plc, expressed profound satisfaction with the company’s performance within the period.
She attributed the success to strategic business decisions of judicious underwriting and investments, highlighting the substantial returns generated by these choices.
The Managing Director said the company was strengthening commercial contacts with significant and key companies in critical sectors such as oil and gas and aviation to attract profitable business from the sectors.
Shareholders who attended the AGM, extoled the company’s board and management for remaining focused and dogged in steering the company to profitability despite the current economic challenges facing businesses in Nigeria.