Veritas Kapital Assurance Plc says it will raise ₦15 billion through a private placement, as insurance companies race to meet Nigeria’s new capital threshold under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The company’s shareholders approved the plan at its recent annual general meeting, which also endorsed an increase in share capital to accommodate the transaction. The company did not say how it planned to use the money, but it is expected the ₦15 billion will strengthen Veritas Kapital’s balance sheet and position it for regulatory compliance ahead of the August 31, 2026 deadline set by the National Insurance Commission (NAICOM).
Signed into law by President Bola Tinubu in August, the NIIRA 2025 mandates higher capital bases across the sector: ₦10 billion for life insurers, ₦15 billion for non-life, ₦25 billion for composite firms, and ₦35 billion for reinsurers. Companies that fail to meet these levels risk mergers, acquisition, or liquidation.
The reform triggered a rally in insurance stocks, pushing some to their highest levels in years, before a recent correction tied to broader market declines.
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Veritas Kapital, a non-life insurer listed on the Nigerian Exchange (ticker: VERITASKAP), reported a sharp improvement in profitability in its latest financials. In the nine months to September 30, its profit before tax rose 64% to ₦4.88 billion, while total assets climbed to ₦36.4 billion and shareholders’ funds grew to ₦17.2 billion, just above the new capital minimum.
Analysts say the capital raise will give the insurer ample headroom to meet NAICOM’s solvency standards and pursue expansion across its subsidiaries — Veritas Glanvills Pensions and Veritas Healthcare.
“The company’s capital management policy is to hold sufficient capital to cover statutory requirements based on NAICOM directives,” Veritas said in its financial report.
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