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Veritas Assurance Plc full-year profits have slumped amid soaring claims costs and spiraling expenses brought on by a red-hot inflation.
Despite the disappointing results, Veritas Insurance is committed to enhancing shareholder value and refining business offerings to provide a seamless customer experience.
F0r the year ended December 2024, Veritas Insurance’s profit after tax (PAT) dipped by 97.33 percent to N73.41 million from N2.75 billion as at December 2023.
The deterioration at the bottom line (profit) is due to a 321.93 percent jump in claims expenses to N13.08 billion and an uptick of 540.17 percent in net expenses from reinsurance expense held, which wipeout all the gains from the windfall at the topline (profit).
Claims costs have risen for insurers due to steeper repair costs, slower repairs, and wage growth as the company is not impervious to the macro backdrop from inflation that is ravaging Nigerians.
The National Bureau of Statistics has reported that Nigeria’s inflation rate rose to 34.80 percent in December 2024, reflecting a slight increase from the 34.60 percent recorded in November.
s a result of the unification of all exchange rate windows to stabilizse the foreign exchange market and spur investment, Naira has lost 68 percent of its value since June 2023. This heaped pressure on imported inflation as the cost of raw materials and assets that are imported skyrocketed.
However, Veristas Insurance’s revenue increased by 224.96 percent to N23.39 billion in the period under review from N7.29 billion as at December 2023.
Analysts say the company has been prudent in underwriting decisions, as it generates reasonable returns on investment securities underpinned by a high yield environment.
Net investment income that comprises gains from net foreign exchange gains stood at N8.65 billion as at December 2024, which is 41.80 percent to N6.10 billion the previous year.
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