By Favour Nnabugwu
Veritas Kapital Insurance Plc has recorded N570 million as its profit for the year 2021, a 39 percent dip from the amount it posted in the previous year.
This was on the back of a post-Covid year that saw organizations struggle to get back on their feet after a long pause in economic activities, which rocked industries – many companies responded by doubling down on operational activities.
In addition to the global pandemic, the Nigerian insurance industry was hit by the #EndSARS protest, which led to a lot of premium spending in 2021. Analysis shows that Veritas Kapital also increased spending slightly during that year.
During the period, the gross premium written and gross premium income stood at N6.3 billion and N5.8 billion, respectively. These, compared to the amount reported for the same purpose for the previous year at N6.27 billion and N5.3 billion, represented a slight. Reinsurance expenses was at N2.86 billion (from N2.81 billion), which drove the net premium to a record N2.9 billion (from N2.5 billion).
Similarly, there was a brief high in the net premium income, fees and commission income in 2021 to N2.9 billion and N491 million which drove the net underwriting income to N3.4 billion against the N2.7 billion in the previous year.
Total insurance claims and benefits paid for the period amounted to N1.3 billion, while the underwriting expenses was N846 million. This shows that the insurer paid more claims in 2021 compared to 2020, which had a record of N910 million and N506 million, leading to an underwriting result of N1.28 billion from N1.29 billion.
The slowdown in the company’s operation is further triggered by a fall in investment income, which fell from N1.8 billion to N1.6 billion, as well as an increase in management expenses to N2.7 billion in 2021 from N2.5 billion. This resulted in a profit before tax of N344 million from N844 million.