Veritas Kapital Assurance sees strong capacity despite volatility in economy

Underwriting firm, Veritas Kapital Assurance Plc said its capacity to underwrite risks even in the long term remains solid despite volatility in the economic environment.

 

Thomas Etuh, chairman of the company who disclosed this during the Company’s 41st Annual General Meeting held in Abuja said notwithstanding the challenges in the operating environment , the capacity of the company to continue to do business on a long-term basis remain solid.

 

“We are very much aware of the task ahead of us and are prepared to become more productive, smarter and more rigorous in dealing with necessary changes.”

 

Etuh said the firm’s strategic focus continues to lean on sustainable growth while it improves on her delivery channels through digital adoption.

 

“Learning from the past, we have taken deliberate steps risk management framework and corporate governance, and we are now better positioned to deliver comparable performance for 2018 and beyond.”

 

Meanwhile, in the 2017 financial year, the Company recorded positives in key indices, where gross premium generated grew by 14 percent to N2.41 billion as against N2.110 billion in 2016, while net premium income up by 10 percent to N1.792 billion, which according to the company was due to ongoing efforts to reposition the brand for accelerated growth.

 

 

Investment income grew by 22 percent reflecting portfolio efficiency and high yield environment, but on the backdrop of ongoing investment in technology infrastructure, operating expense increased by 38 percent.

 

 

Also during the financial year, the Company met its claims payment obligations as and when due to the tune of N1.194 billion. The steep rise in claims expense was as a result of exposure in oil and gas sector, the effect of this was moderated by existing re-insurance treaties which remain robust, the chairman said.

 

 

Total assets inched up slightly to close at N11.334 billion, its highest balance sheet position ever, while retained earnings and equity were depressed however due to restating of prior year financials.

 

 

Other decisions by the company in the review year,were the appointment of the Polycarp Didam as managing director in charge of technical and operations, as well as Priya Heal, as a non-executive director.

 

 

Etuh said with their appointments, we gained an executive team with extensive insurance industry experience, a proven track record of delivering impressive financial performance and growth and a roadmap to improving our performance and growing market share.

 

 

“Since their arrival, they have outlined a clear strategy for the company focused on pursuing long-term profitable growth, attracting new leaders to complement and strengthen the management team and improving core insurance operations.”