Veritas Kapital Assurance Plc has announced plans to raise up to N15 billion in new capital to strengthen its balance sheet and sustain future growth. The move will be tabled for shareholder approval during the company’s 48th Annual General Meeting (AGM) scheduled for October 31, 2025, in Abuja.
According to a corporate notice filed ahead of the meeting, the board will seek approval to raise funds through private placement or other suitable financing methods, subject to necessary regulatory clearances. Once approved, the new shares will rank equally with existing ordinary shares and will be registered with the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), and The Nigerian Exchange Limited (NGX).
The company also plans to amend its Memorandum and Articles of Association to reflect the increased share capital, in line with the Companies and Allied Matters Act (CAMA) 2020. The board has requested authority to appoint advisers, execute all required documents, and finalize every step needed to actualize the capital raise.
Boosting Growth and Operational Resilience
Veritas Kapital said the fresh capital will enhance its financial capacity, expand underwriting operations, and strengthen its solvency position amid evolving market conditions. The initiative comes as the insurer continues to recover from foreign exchange headwinds that affected profitability despite a strong revenue performance in 2025.
Strong H1 2025 Performance
In the first half of 2025, the company posted solid results, with total revenue climbing to N12.5 billion, compared to N9.9 billion in the same period of 2024. Aviation insurance led the growth with N5.8 billion in contributions, followed by the Oil and Gas segment at N2.9 billion, while other business lines made up the remainder.
The firm’s insurance service result surged by 141.99% year-on-year to N4.7 billion. However, foreign exchange losses of N26.3 million, compared to a N4.1 billion gain in the prior year, negatively impacted net investment income, which fell to N1.8 billion from N5.7 billion.
As a result, net insurance and investment income dipped to N6.6 billion, down from N7.6 billion in 2024, while operating expenses rose to N3.3 billion from N2.26 billion. This led to a 36.02% decline in profit before tax, which settled at N3.7 billion.
Resilient Balance Sheet and Stock Performance
Despite the decline in profit, Veritas Kapital maintained a strong financial position. Total assets increased to N41.7 billion, up from N37.5 billion in 2024, while retained earnings rebounded to N1.7 billion, reversing a N1.18 billion loss a year earlier.
The insurer also reported N13 billion in gross premiums, representing a 9.83% year-on-year growth, as its underwriting business continued to expand.
On the stock market, Veritas Kapital’s share price has surged 51.47% year-to-date, driven largely by bullish sentiment in the third quarter of 2025. The stock climbed from N1.30 in early August to above N2.00, reflecting renewed investor confidence in the company’s outlook and its capital restructuring plans.
Would you like me to make this version a little longer (around 600 words) with more analysis on why the capital raise matters for shareholders and the insurance industry?
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
