This picture taken on January 29, 2016 in Lagos shows 1000 naira banknotes, Nigeria's currency. - Nigeria's central bank governor, Godwin Emefiele, on January 26 dismissed calls to devalue the naira in his monetary policy committee statement. Instead he chose to continue propping up the currency at 197-199 naira to the dollar and maintain foreign-exchange restrictions. As a result, the naira on the black market is hovering around a record low of 305, fuelling complaints from domestic and foreign businesses who can't access dollars required for imports. (Photo by PIUS UTOMI EKPEI / AFP) (Photo by PIUS UTOMI EKPEI/AFP via Getty Images)
Veritas Kapital Assurance Plc has announced plans to raise up to N15 billion in fresh capital, according to a notice issued ahead of its 48th Annual General Meeting scheduled for October 31, 2025, in Abuja.
According to the notice, the board of directors will seek shareholder approval to raise the funds through private placement or other methods, subject to all necessary regulatory approvals.
The proposed capital increase will ensure that new shares rank equally with existing ordinary shares and, once approved, are registered with the Securities and Exchange Commission, the Corporate Affairs Commission, and The Nigerian Exchange Limited.
In line with this, the company’s Memorandum and Articles of Association will be amended to reflect the new share capital in accordance with the Companies and Allied Matters Act (CAMA) 2020.
The board is also seeking authorization to appoint advisers, execute necessary documents, and take all steps required to implement the resolution, while all previous actions related to the capital raise will be ratified and approved at the meeting.
The planned capital raise is expected to strengthen the company’s operations, which, despite recording strong revenue growth in the first half of 2025, still faced some challenges.
H1 2025 Performance
Veritas Kapital Assurance Plc delivered a solid top-line performance in the first half of 2025, with revenue rising to N12.5 billion, up from N9.9 billion in the same period last year.
- Aviation insurance remained the key driver, contributing N5.8 billion, followed by the Oil and Gas segment with N2.9 billion, while other business lines made up the rest.
After accounting for expenses, the company’s insurance service result stood at N4.7 billion, representing a strong 141.99% increase year-on-year.
- However, foreign exchange activities weighed performance, as Veritas recorded a Net FX loss of N26.3 million compared to a gain of N4.1 billion in the same period of 2024.
- This impacted net investment income, which fell to N1.8 billion from N5.7 billion. Consequently, net insurance and investment results declined to N6.6 billion, down from N7.6 billion a year earlier.
Other operating expenses also increased to N3.3 billion from N2.26 billion, leading to a 36.02% drop in profit before tax to N3.7 billion.
Balance sheet and strong share price
Despite the softer earnings, the company’s balance sheet was strong.
Total assets rose to N41.7 billion, compared to N37.5 billion in the same period of 2024.
The group also rebounded with N1.7 billion in retained earnings, recovering from a loss of N1.18 billion a year earlier, while total liabilities remained steady at around N22 billion.
Year-to-date, the stock has gained 51.47%, with much of the advance occurring in the third quarter, when a strong market rally in August pushed the share price from N1.30 to above N2.00.
