Veritas Kapital Assurance Recovers From Loss Position, Makes N253 Million Profit Before Tax

Veritas Kapital Assurance Plc has recorded a remarkable improvement, recovering from loss position in 2019 financial year with an increase in Profit Before Tax (PBT) hitting N253 million as against loss of N50 million in the previous year.

This is even as it recorded a decline in management expenses by 4 percent to N1.462 billion in 2019 from N1.530 billion with a two percent increase in net assets hitting N7.947 Billion as against N7.781 billion in the previous year.

These were disclosed during the company’s 43rd Annual General Meeting (AGM) as contained in its 2019 Annual Report and Accounts, held at the Corporate headquarters of the company in Abuja.

During the meeting held in line with the COVID-19 Rules and guidelines, the Chairman of the Board of Directors, Thomas Etuh, in an opening statement while applauding the improvements, said the focus of the company for the year 2020 is “simply innovative”

According to  Etuh who was represented by Sen. Maj. Gen. Mohammed A. Magoro, “Innovation is how we will win in the highly competitive environment that we operate in that is also further challenged by the effects of the novel Coronavirus pandemic.

“This will include innovation in processes, enhancement of our product portfolio, development of mutually beneficial partnerships and
collaborations, while ensuring simplicity in all areas of your company’s operations. We are confident that the future remains ours to shape.”

He said in spite of the pandemic, and the associated lockdown imposed on a significant portion of economic activities by the Federal Government, the “Company has been providing seamless and uninterrupted service to customers and stakeholders.

“We activated our Business Continuity Plan by asking staff to work from home starting on Tuesday 24th March, 2020. Our offices have reopened since the ease of lockdown as directed by the Federal Government.

“Even though Nigeria’s insurance industry has yet to exceed a penetration rate of 1%, we expect that several nonregulatory growth drivers will reverse these trends. Micro-insurance and index insurance in the Agriculture sector are potential growth areas for the industry.”

Also speaking, the Managing Director, Kenneth E. Egbaran, said that the company’s 2019 record was a great improvement when compared to where the company is coming from.

The Managing Director, Veritas Kapital Assurance Plc, Kenneth Egbaran

According to him, “I think it is a great improvement when compared to where we are coming from in the year, 2018 when we declared a loss position and in 2019, we lifted up to a profit position. So, I believe that it is an encouraging development

“In the area of top line, there was an improvement and there was also improvement in the middle line in terms of underwriting profits. What I mean is that a lot of care was taken by the company to ensure that the classes and qualities of businesses are accepted. Even the profit also showed that the company is doing well.

“In all indices, I believe that the company did well and that is what we are trying to build on to ensure that we are not going to drop the ball even in this situation where everybody believe that not really much can happen because of the COVID-19 pandemic.

“But we are poised to prove sceptics wrong, that is our area of focus to build on what we have achieved.”

Directors and top management of the company who were present at the meeting include: Mr. Wole Onasanya, Executive director; Aminu Babangida, Director; Mal. Ibrahim M. Kashmir, Director; Ms Saratu Umar Garba, Company Secretary; Sen. Maj. Gen. Mohammed Magoro (Rtd), Director; Kenneth E. Egbaran, Managing Director;  and Hajiya Yabawa Wabi, among others.