Veritas Kapital Assurance PlcNSENG: VERITASKAP

Quarter 2 - financial statement for 2025

Jul 30, 2025 at 4:26 PM UTC · Issued by Veritas Kapital Assurance Plc

RC 11785

VERITAS KAPITAL ASSURANCE PLC CONSOLIDATED AND SEPARATE UNAUDITED FINANCIAL STATEMENTS (UFS) FOR THE PERIOD ENDED 30 JUNE 2025

VERITAS KAPITAL ASSURANCE PLC

Consolidated and Separate Unaudited Financial Statements

For the period ended 30 June 2025

TABLE OF CONTENTS PAGE

Corporate Information 1

Results at a glance 2

Vision, Mission and Values 3

Our Commitments 4

Consolidated and Separate Statement of Financial Position 6

Consolidated and Separate Statements Profit or Loss and Other Comprehensive Income 7

Consolidated and Separate Statements of Changes in Equity 8

Consolidated and Separate Statements of Cash Flows 10

Notes to the Consolidated and Separate Financial Statements 11

Other National Disclosures:

Value Added Statement 113

Five-Year Financial Summary 114

CORPORATE INFORMATION DIRECTORS

Mr. Nahim Abe Ibraheem Non-Executive Director - Chairman (resigned 2 May 2025)

Dr. Oluwafunsho A. Obasanjo Non-Executive Director

Mr. Aminu Babangida Non-Executive Director

Hajia Yabawa Lawan Wabi (MNI) Non-Executive Director

Mrs Priya Heal (British) Non-Executive Director

Emmanuel Etuh Non-Executive Director

Mr. Paul Oki Independent Non-Executive Director

Mr. Sunkanmi Adekeye Executive Director, Operations

Dr. Adaobi Nwakuche Managing Director/CEO

COMPANY SECRETARY RE-INSURERS

Ms. Saratu Umar Garba African Reinsurance Corporation

FRC/2019/NBA/00000019159 Continental Reinsurance Corporation WAICA Reinsurance Corporation

REGISTERED OFFICE Nigerian Reinsurance Corporation Plot 497, Abogo Largema Street, Alwen Hough Johnson (AHJ) Limited Off Constitution Avenue, CK Reinsurance Limited

Central Business District Meridian Risk Solutions Ltd, London

Abuja. Score Re.

CICA Re.

www.veritaskapital.com ACTUARIES

RC NO: 11785 O & A Hedge Actuarial Consulting (Consulting Actuaries & Chartered Insurers) Suite 28, Motorways Centre

FRC REGISTRATION NO: (Opposite 7UP Bottling Plant)

FRC/2013/0000000000717 1 Motorways Avenue

Alausa Ikeja - Lagos, Nigeria

BANKERS REGISTRARS

Unity Bank Plc Unity Registrars Limited

Guaranty Trust Bank Plc. 25 Ogunlana Drive

First Bank Limited Surulere Lagos. Fidelity Bank Plc

Keystone Bank Limited AUDITORS

Sterling Bank Plc Ernst & Young Nigeria

Access Bank Plc (Chartered Accountants)

Zenith Bank Plc 10th & 13th Floor, UBA House, 57 Marina, Lagos, Nigeria

PROPERTY VALUERS TAX CONSULTANTS

Jide Taiwo & Co Pedabo Professional Services

No 70 Abidjan street wuse zone 3 Lagos Abuja-FCT

REGULATORY AUTHORITY

National Insurance Commission

Tax Identification Number 01129230-0001

FINANCIAL RESULT AT A GLANCE

RESULT AT A GLANCE (GROUP)
Figure in thousands of naira	2025	2024	Changes
Gross premium	13,572,102	12,574,453	997,649	8%
Insurance revenue	12,579,609	9,907,534	2,672,075	27%
Insurance service expense	695,423	(3,224,789)	3,920,212	122%
Insurance service result before reinsurance contracts held	13,275,032	6,682,745	6,592,287	99%
Net expenses from reinsurance contracts held	(8,517,037)	(4,716,584)	(3,800,453)	-81%
Profit before taxation	3,702,685	5,787,252	(2,084,567)	-36%
Taxation	(105,174)	(603,388)	498,214	83%
Profit after taxation	3,597,511	5,183,864	(1,586,353)	-31%

RESULT AT A GLANCE (COMPANY)
Figure in thousands of naira	2025	2024	Changes
Gross premium	13,572,102	12,574,453	997,649	8%
Insurance revenue	12,313,150	9,907,534	2,405,616	24%
Insurance service expense	866,303	(3,224,789)	4,091,092	127%
Insurance service result before reinsurance contracts held	13,179,453	6,682,745	6,496,708	97%
Net expenses from reinsurance contracts held	(8,517,037)	(4,716,584)	(3,800,453)	-81%
Profit before taxation	3,237,872	5,504,678	(2,266,806)	-41%
Taxation	(74,647)	(596,626)	521,979	-87%
Profit after taxation	3,163,225	4,908,052	(1,744,827)	-36%

VISION MISSION AND VALUES MISSION

To help our Stakeholders have peace of mind

VISION

To be one of the top Insurance Companies of choice in Africa

PRINCIPLES Integrity

We will act with openness, fairness, integrity and diligence. We will always adhere to the applicable laws, regulations and standards of doing business.

Performance

We will promote a positive and challenging high performance culture. We will do this by encouraging personal accountability, development and measuring, reward and recognizing success.

Responsibilty

We will act responsibly as individuals and as a Company. This applies to the management of our business, our approach to corporate interaction with key external stakeholders.

Values

Working in teams Servicing our Customers Respecting each other Being proactive

Growing our people

Delivering to our Shareholders Guarding against arrogance

Upholding the highest levels of integrity

OUR COMMITMENTS Customers

A satisfied and loyal customer base is core to our business.

We are committed to:

Delivering the consistent and reliable levels of customer service.
Acting with integrity, due care and diligence.
Communicating openly, honestly and with sensitivity and understanding.
Listening to our customers.
Handling complaints fairly and promptly.
Respecting our customers' rights to privacy and confidentiality.
Protecting our customers and our business from fraud.
Business Partners
We demand high standards from the companies we work with and believe that they should expect the same from us.
We are committed to:
Carrying out our business with fairness and integrity.
Being reliable and quick to respond.
Awarding contracts and selecting business partners solely on the basis of fair and objective business criteria and having regards to high ethical standards.
Respecting all obligations and confidentiality.
Protecting our customers and our business from fraud.
Employees
Motivated and skilled employees are critical to our success.
We are committed to:
Fostering a positive and challenging high performance culture.
Rewarding superior performance.
Encouraging personal development.
Encouraging a culture of frank and honest communication.
Encouraging teamwork and strong leadership.
Providing a safe and secure working environment.
Encouraging diversity and equal opportunities.
Ensuring that grievances and unethical behaviour can be raised without fear of discrimination.
In return we expect our employees to:
Act with integrity.
Take responsibility and accountability for their own actions.
Show support and commitment for change.
Focus their energy in getting the best from themselves and others.
Have the confidence and courage to act with conviction.
Show understanding for and meet external and internal customers needs.
Show a relentless desire for success.
Create positive and effective working relationships.
OUR COMMITMENTS - CONTINUED Regulators
We have an open, cooperative and transparent relationship with our regulators.
We are committed to:
Dealing with our regulators in an open, cooperative and transparent manner.
Managing our business with appropriate standards of risk management and controls.
Preventing and reporting any instances of significant financial crime.
Preventing breaches of relevant regulatory requirements.
Complying with all set standards.
Community & Environment
We believe in continuous improvement of our environmental performance and in taking action around emerging environmental issues. Whenever we operate, we will seek positive engagement with local communities.
We are committed to:
As a business, we have a responsibilty to manage our impacts on the environment through appropriate use of resources such as energy, paper and water and the investment of our assets.
We also have a responsibility to take proactive action on environmental issues that are likely to affect our business and community at large.
In each of these areas, we will look to make continuous improvement and actively monitor our performance.
Shareholders
We are committed to fufilling the aspirations of our shareholders through a commitment to business performance, and high standards of transparency, communication and corporate governance.
We are committed to:
A culture of business performance, focused on delivering returns to shareholders.
Comprehensive and transparent disclosure.
Aiding Shareholder's understanding through the disclosure of relevant financial and non-financial information.
Listening to the views of our shareholders.
Managing our business with appropriate standards of risk and control.
Ensuring due care in the selection of our third party advisers, including our auditors.
Preventing and reporting any market abuse.
Acting with due sense of responsibilty on confidence entrusted to us.

VERITAS KAPITAL ASSURANCE PLC

Consolidated and Separate Unaudited Financial Statements

For the period ended 30 June 2025

CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL AS AT 30 JUNE 2025	POSITION
Assets	Notes	2025 Group N'000	2024 Group N'000	2025 Company N'000	2024 Company N'000
Cash and cash equivalents	3	13,803,344	11,196,743	11,745,809	9,830,861
Investment securities: Fair value through profit or loss	4	156,660	138,264	156,660	138,264
Amortised cost	4	9,770,422	10,197,218	5,036,458	5,084,068
Fair value through OCI	4	492,056	492,056	492,056	492,056
Trade receivables	5	2,377,572	1,545,616	2,377,572	1,545,616
Reinsurance contract assets	17	6,649,000	5,841,670	6,649,000	5,841,670
Other receivables and prepayments	6	1,343,553	884,869	218,913	174,054
Investment in subsidiaries	7	-	-	4,026,300	4,026,300
Property, plant and equipment	9	5,952,603	6,020,334	5,004,671	5,033,899
Goodwill	10	316,884	316,884	-	-
Intangible assets	11	485,942	551,790	471,316	539,166
Statutory deposits	12	355,000	355,000	355,000	355,000
Total assets		41,703,036	37,540,443	36,533,755	33,060,953
Liabilities:
Insurance contract liabilities	17	14,022,934	16,303,627	14,022,934	16,303,627
Other contract liabilities	25	3,847	8,899	-	-
Trade payables	13	5,822,733	2,785,404	5,822,733	2,785,404
Employees retirement benefit obligations	14	12,622	27,712	-	-
Provision and other payables	15	2,217,601	2,351,635	1,321,762	1,690,510
Income tax liabilities	16	285,026	404,691	94,898	173,210
Deferred tax liabilities	16.2	372,737	372,737	190,671	190,671
Total liabilities		22,737,500	22,254,705	21,452,998	21,143,422
Share capital & reserves:
Share capital	18	6,933,333	6,933,333	6,933,333	6,933,333
Share premium	19	663,600	663,600	663,600	663,600
Statutory contingency reserves	20	3,243,929	2,611,284	3,243,929	2,611,284
Retained earnings	21	1,718,056	(1,189,503)	224,830	(2,305,750)
Other components of equity: Asset revaluation reserve	22	3,974,282	3,974,282	3,735,496	3,735,496
Fair value reserve	23	275,880	275,880	279,569	279,569
Equity attributable to equity holders of the parent		16,809,080	13,268,875	15,080,757	11,917,532
Non Controlling interest (NCI)	37	2,156,456	2,016,865	-	-
Total Equity		18,965,536	15,285,740	15,080,757	11,917,531
Total Equity & Liabilities		41,703,036	37,540,443	36,533,755	33,060,953

These financial statements were approved by the Board on 28 July 2025 and signed on its behalf by:

……………………………......................... ……………………………...............

Mojeed Somorin Dr. Adaobi Nwakuche

Chief Financial Officer Managing Director

FRC/2017/PRO/ICAN/001/00000016849 FRC/2021/003/00000023865

The statement of material accounting policies and the accompanying notes to the consolidated and separate financial statements form an integral part of these financial statements.

Group				Company
Q2 2025	YTD 2025	Q2 2024	YTD 2024	Q2 2025	YTD 2025	Q2 2024	YTD 2024
N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
7,946,702	12,579,609	3,534,555	9,907,534	7,754,338	12,313,150	3,534,555	9,907,534
1,339,820	695,423	(536,915)	(3,224,789)	1,470,164	866,303	(536,915)	(3,224,789)
9,286,522	13,275,032	2,997,640	6,682,745	9,224,502	13,179,453	2,997,640	6,682,745
(6,374,200)	(8,517,037)	(3,156,949)	(4,716,584)	(6,374,200)	(8,517,037)	(3,156,949)	(4,716,584)
2,912,321	4,757,995	(159,309)	1,966,161	2,850,302	4,662,416	(159,309)	1,966,161
260,435	487,337	237,207	481,181	118,616	205,908	79,240	182,975
(1,629)	13,065	(34,044)	(3,006)	(1,629)	13,065	(34,044)	(3,006)
(4,345)	(26,359)	88,141	4,132,381	(4,345)	(26,359)	88,141	4,132,381
-	(5,740)	-	-	-	-	-	-
-	-	-	-	-	-	-	-
731,727	1,427,578	595,267	1,152,805	181,611	365,048	152,200	297,760
986,188	1,895,881	886,571	5,763,361	294,253	557,662	285,537	4,610,110
-	-	(23,420)	(140,663)	-	-	(23,420)	(140,663)
-	-	16,625	87,574	-	-	16,625	87,574
-	-	(6,795)	(53,089)	-	-	(6,795)	(53,089)
3,898,509	6,653,876	720,467	7,676,433	3,144,555	5,220,078	119,434	6,523,182
201,832	361,819	72,338	372,701	20,616	20,734	21,230	29,074
(2,056,827)	(3,313,010)	(1,219,348)	(2,261,882)	(1,371,461)	(2,002,940)	(564,533)	(1,047,578)
-	-	-	-
2,043,514	3,702,685	(426,543)	5,787,252	1,793,710	3,237,872	(423,869)	5,504,678
(63,846)	(105,174)	(60,231)	(603,388)	(36,886)	(74,647)	(189,946)	(596,626)
1,979,668	3,597,511	(486,774)	5,183,864	1,756,824	3,163,225	(613,815)	4,908,052
- - -	- - -	- - -	- - -	- - -	- - -	- - -	- - -
-	-	-	-	-	-	-	-
1,979,668	3,597,511	(486,774)	5,183,864	1,756,824	3,163,225	(613,815)	4,908,052
68,887	127,608	447,832	622,064	1,756,824	3,163,225	(613,815)	4,908,052
1,910,781	3,469,903	(934,606)	4,561,800	-	-	-	-
1,979,668	3,597,511	(486,774)	5,183,864	1,756,824	3,163,225	(613,815)	4,908,052
68,887	127,608	447,832	622,064	1,756,824	3,163,225	-	-
1,910,781	3,469,903	(934,606)	4,561,800	-	-	-	-
1,979,668	3,597,511	(486,774)	5,183,864	1,756,824	3,163,225	-	-
0.29	0.52	(0.07)	0.75	0.25	0.46	(0.09)	0.71

CONSOLIDATED AND SEPARATE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR HALF YEAR ENDED 30 JUNE 2025

Notes

Insurance revenue 26

Insurance service expenses 27

Insurance service result before reinsurance contracts held

Net expenses from reinsurance contracts held 28

Insurance service result

Interest income calculated using the effective interest method 31a

Net fair value gains on financial assets at fair value through profit or loss 31c Net foreign exchange gain 32

Credit impairment (charge)/reversal 34

Finance cost 14a(i)

Other investment income 31b

Net investment income

Finance expenses from insurance contracts issued 29

Finance income from reinsurance contracts held 30

Net insurance finance income

Net insurance and investment result

Other operating income 33

Other operating expenses 35

Share of profit of associates and joint ventures accounted for using the equity m

Profit before income tax

Tax expense 36

Profit for the period

Other comprehensive income:

Items that will not be reclassified subsequently to profit or loss(net of tax):

Net acturial gains/(loss) on retirement benefit obligation 50a

Gain on revaluation of property, plant and equipment (net of tax) 50b Fair value gain on financial asset at FVOCI(net of tax) 50c Other comprehensive income, Net of tax

Total comprehensive (loss)/income

Profit for the period, attributable to:

Non-controlling interests
Owners' of the Parent
Total Comprehensive Income, attributable to:
Non-controlling interests
Owners' of the Parent

Basic Earnings per Share 24

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR HALF YEAR ENDED 30 JUNE 2025
Group
	Share Capital	Share Premium	Asset revaluation reserve	Fair value reserve	Contingency Reserve	Retained Earnings	Total	Non-Controlling Interest	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2025	6,933,333	663,600	3,974,282	275,880	2,611,284	(1,189,504)	13,268,875	2,016,863	15,285,738
Profit for the year Other Comprehensive Income: Gain on revaluation of properties, plant and equipment	- -	- -	- -	- -	- -	3,540,205 -	3,540,205 - -	127,608 -	3,667,813 -
Fair value gain on financial asset at FVOCI Transfer to statutory reserve Transfer of revaluation gain on disposal of PPE	- -	- -	- -	- -	- -	- - -	- - -	-11,985 -	-11,985 -
Acturial gain on retirement benefit obligation	-	-	-	-	-	-	-	-	-
Total Comprehensive Income	-	-	-	-	-	3,540,205	3,540,205	139,593	3,679,798
Transfer to Contingency Reserve Transactions with owners of equity	-	-	-	-	632,645	(632,645)	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-	-	-
At 30 June 2025	6,933,333	663,600	3,974,282	275,880	3,243,929	1,718,056	16,809,080	2,156,456	18,965,536
	Share Capital	Share Premium	Asset revaluation reserve	Fair value reserve	Contingency Reserve	Retained Earnings	Total	Non-Controlling Interest	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2024	6,933,333	663,600	3,634,971	235,984	1,900,456	1,008,862	14,377,206	1,991,597	16,368,802
Profit for the year Other Comprehensive Income: Gain on revaluation of properties, plant and equipment	- -	- -	- -	- -	- -	4,561,800 -	4,561,800 - -	622,064 -	5,183,864 - -
Fair value gain on financial asset at FVOCI	-	-	-	-	-	-	-	-	-
Transfer of revaluation gain on disposal of PPE	-	-	-	-	-	-	-	-	-
Acturial gain on retirement benefit obligation			-			-	-	-	-
Total Comprehensive Income	-	-	-	-	-	4,561,800	4,561,800	622,064	5,183,864
Transfer to Contingency Reserve Transactions with owners of equity:	-	-	-	-	981,610	(981,610)	-	-	-
Dividends to equity holders	-	-	-	-	-	-	-	-	-
At 30 June 2024	6,933,333	663,600	3,634,971	235,984	2,882,066	4,589,052	18,939,006	2,613,661	21,552,666

Consolidated and Separate Unaudited Financial Statements

For the period ended 30 June 2025

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR HALF YEAR ENDED 30 JUNE 2025

Company	Share Capital	Share Premium	Asset revaluation reserve	Fair value reserve	Contingency Reserve	Retained Earnings	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2025	6,933,333	663,600	3,735,496	279,569	2,611,284	(2,305,750)	11,917,532
Loss for the year	-	-	-	-	-	3,163,225	3,163,225
Other Comprehensive Income: Gain on revaluation of properties, plant and equipment	-	-	-	-	-	-	-
Fair value gain on financial asset at FVOCI	-	-	-	-	-	-	-
Transfer of revaluation gain on disposal of PPE	-	-	-	-	-	-	-
Total Comprehensive Income	-	-	-	-	-	3,163,225	3,163,225
Transfer to Contingency Reserve	-	-	-	-	632,645	(632,645)	-
At 30 June 2025	6,933,333	663,600	3,735,496	279,569	3,243,929	224,830	15,080,757
	Share Capital	Share Premium	Asset revaluation reserve	Fair value reserve	Contingency Reserve	Retained Earnings	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2024	6,933,333	663,600	3,396,185	239,673	1,900,456	39,674	13,172,921
Profit for the year	-	-	-	-	-	4,908,052	4,908,052
Other Comprehensive Income: Gain on revaluation of properties, plant and equipment	-	-	-	-	-	-	-
Fair value gain on financial asset at FVOCI	-	-	-	-	-	-	-
Transfer of revaluation gain on disposal of PPE	-	-	-	-	-	-	-
Total Comprehensive income	-	-	-	-	-	4,908,052	4,908,052
Transfer to Contingency Reserve					981,610	(981,610)	-
At 30 June 2024	6,933,333	663,600	3,396,185	239,673	2,882,066	3,966,116	18,080,973

The statement of material accounting policies and the accompanying notes to the Consolidated and separate financial statements form an integral part of these financial statements.

VERITAS KAPITAL ASSURANCE PLC

Consolidated and Separate Unaudited Financial Statements

For the period ended 30 June 2025

CONSOLIDATED AND SEPARATE STATEMENT OF CASHFLOWS FOR HALF YEAR ENDED 30 JUNE 2025
	2025	2024	2025	2024
	Group	Group	Company	Company
Cash flows from operating activities: Notes	N'000	N'000	N'000	N'000
Premium received 17a	13,018,097	11,852,203	12,740,148	11,694,241
Amount received in respect of claims 17b	-	577,624	-	577,624
Other operating income 33	361,819	372,701	20,734	29,074
Cash paid to and on behalf of employees 35	(1,599,332)	(825,812)	(870,746)	(250,958)
Reinsurance premium paid 17b	(7,001,417)	(4,646,610)	(7,001,417)	(4,646,610)
Insurance benefits and claims paid 17a	(1,040,619)	(1,433,122)	(956,463)	(1,361,544)
Acquisition costs paid 17a	(2,307,543)	(1,688,812)	(2,307,543)	(1,688,812)
Other acqusition (Maintenance expense) paid during the year 17a	(41,744)	(68,338)	(41,744)	(68,338)
Exchange gain 32	(26,359)	-	(26,359)	-
Cash paid to intermediaries and other suppliers	(681,198)	(760,817)	(327,449)	(242,550)
Company income tax paid 16	(224,839)	(122,788)	(152,959)	(56,758)
Net cashflow from operating activites	456,865	3,256,229	1,076,202	3,985,369
Cash flow from investing activities:
Purchase of property, Plant and equipment 9	(45,178)	(206,613)	(38,583)	(180,183)
Purchase of intangible assets 11	(6,960)	(2,213)	-	-
Proceed from sale of property and equipment 49a	8,010	16,749	-	16,748
Proceed from disposal of investment property 9	-	-	-	-
Dividend income 31	9,298	6,527	9,298	6,527
Interest received	1,730,281	1,627,458	574,723	460,971
Purchase of amortised cost investment 4v	(628,655)	(2,407,906)	-	(1,284,110)
Investment in subsidiary	-	-	-	-
Redemption/repayment on amortised cost investments 4v	1,055,451	1,346,296	266,949	1,346,296
Net cashflows used in investing activites	2,122,247	380,298	812,387	366,249
Cash flow from financing activities:
Investment in subsidiary 7	-	-	-	-
Deposit for shares 38	-	-	-	-
Dividend paid 21&37	-	-	-	-
Net cashflows used in financing activites	-	-	-	-
Net increase in cash and cash equivalents	2,579,112	3,636,527	1,888,589	4,351,618
Cash and cash equivalents at the 1 January	11,258,477	6,576,972	9,890,315	4,721,860
Effects of exchange rate changes on cash and cash equivalents	26,359	-	26,359	-
Cash and cash equivalents at the 30 June 3	13,863,948	10,213,499	11,805,263	9,073,478

The statement of material accounting policies and the accompanying notes to the Consolidated and separate financial statements form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS

Reporting Entity
Veritas Kapital Assurance Plc ("the Company") was initially incorporated under the name of Kapital Insurance Company Limited as a private limited liability Company On the 8 August, 1973. on 14 March 2007, it acquired and merged withs two other insurance companies became a public limited liability group. Its shares are quoted on the Nigerian Exchange Group.
Its Head Office is located at 497 Abogo Largema Street, Off constitution Avenue, Central Business District, Abuja Nigeria.
The Company has 93.5% equity interest in Veritas Health Care Limited and 70% interest in Veritas Glanvills Pensions Limited and 51.53% in Gold link Insurance Plc. The group comprises of two subsidiaries, an associate and the parent Company.
Principal Activities
The principal business of the group is underwriting of non-life insurance risks. The subsidiaries activities are:
- Veritas Glanvills Pensions Limited, the administration and management of pension fund assets.
- Veritas Health Care Limited provision of health insurance.
Components of Financial Statements
The Consolidated and Separate Financial Statements comprise the Statements of Profit or Loss and Other Comprehensive Income, Consolidated and separate statements of Financial Position, Consolidated and separate Statement of Changes in Equity, Consolidated and separate Statements of Cash Flows, and the accompanying Notes.
Income and expenses (excluding the components of other comprehensive income) are recognized in the profit or loss segment of profit or loss to arrive at the profit for the year.
Other comprehensive income is recognized in the other comprehensive segment of the statement of other comprehensive income and comprises items of income and expenses that are not recognized in the statement of profit or loss as required or permitted by IFRS Accounting Standards.
The addition of the profit for the year and the other comprehensive income gives the total comprehensive income for the year.
Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognized in other comprehensive income in the current or previous periods. Transactions with the owners of the group in their capacity as owners are recognized in the statement of changes in equity.
Basis of preparation and measurement
Historical cost basis was used in preparation of the consolidated and separate financial statements as modified by the certain items of:
- Property, plant and equipment at valuation
- Investment property at fair value
- Investments at fair value
- Impaired assets at their recoverable amounts
Compliance with IFRS and NAICOM
These Consolidated and separate financial statements have been prepared in accordance with the (IFRS) Accounting Standards, IFRS Interpretations Committee (IFRIC) Interpretations applicable to companies reporting under IFRS as issued by the International Accounting Standards Board (IASB), Financial Reporting Council of Nigeria (Amendment) Act, 2023, Insurance Act, 2023 and regulatory guidelines as pronounced from time to time by National Insurance Commission (NAICOM). Additional information required by national regulations have been included where appropriate.
Going Concern status
The consolidated and separate financial statements have been prepared on the going concern basis. The group has no intention or needs to reduce substantially its business operations. The management believes that the going concern assumption is appropriate for the company and group due to sufficient liquidity and based on historical experience that short-term obligations will be refinanced in the normal course of business. Liquidity ratio and continuous evaluation of current ratio of the group is carried out to ensure that there are no going concern threats to the operation of the group.
Pr e s e n t a t i o n of financial statements
The group presents its consolidated and separate statements of financial position broadly in order of liquidity. An analysis regarding recovery or settlement within twelve months after the reporting date (current) and more than 12 months after the reporting date (non-current) is presented in the Notes.
Significant judgements and key sources of estimation uncertainty

In the process of applying the accounting policies adopted by the group and company, the Directors make certain judgements and estimates that may affect the carrying values of assets and liabilities in the next financial period. Such judgements and estimates are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the current circumstances. the directors evaluate these at each financial reporting date to ensure that they are still reasonable under the prevailing circumstances based on the information available.

1.8 Significant judgements and key sources of estimation uncertainty - continued

The preparation of the group's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. These factors should include:

The judgements made by the Directors in the process of applying the group's accounting policies that have the most significant effect on the amounts recognized in the financial statements include:

Claims arising from insurance contracts
Liabilities for unpaid claims are estimated on a case by case basis. The liabilities recognized for claims fluctuate based on the nature and severity of the claim reported. Claims incurred but not reported are determined using statistical analyses and the group deems liabilities reported as adequate.
Fair value of unquoted equity financial instruments
The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases, the fair values are estimated from observable data using valuation models.
Property, Plant and equipment
Property, Plant and equipment represent one of the most significant proportion of the asset base of the group, accounting for about 26% of the group's total assets. Therefore, the estimates and assumptions made to determine their carrying value and related depreciation are critical to the group's financial position and performance.
The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. Increasing an asset's expected life or its residual value would result in the reduced depreciation charge in the statement of comprehensive income.
The useful lives and residual values of the property, plant and equipment are determined by management based on historical experience as well as anticipation of future events and circumstances which may impact their useful lives.
Goodwill

Goodwill is tested for impairment annually or whenever we identify certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among

Significant judgements and key sources of estimation uncertainty - continued
other things, unexpected adverse business conditions, macro and reporting unit specific economic factors (for example, interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated competitive activities, and acts by governments and courts.
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of the cash generating unit to which the goodwill relates. Where the recoverable amount of the cash generating unit is less than their carrying amount, an impairment is recognized.
- Deferred Tax Assets
  Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which temporary differences can be utilised. Management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and other factors.
Functional and presentation currency

The consolidated and separate financial statements are presented in Nigerian Naira (Naira), rounded to the nearest thousand, this is also the functional currency of the group.

Summary of material accounting policies
1. Introduction to summary of accounting policies
  The material accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2. Insurance contracts
  1. Key types of insurance contracts issued, reinsurance contracts held and measurement approach.
    The Group issues non-life insurance to individuals and businesses. Non-life insurance products offered include motor, general accident, marine, fire bond, oil & gas, engineering and agriculture. These products offer protection of policyholder's assets and indemnification of other parties that have suffered damage as a result of a policyholder's accident.
    The company accounts for these contracts applying the Premium Allocation Approach (PAA).
    The company also holds reinsurance contracts to mitigate risk exposures. The types of reinsurance contracts held include -facultative reinsurance, treaty Reinsurance. proportional reinsurance, non-proportional reinsurance. These are also accounted for using the Premium Allocation Approach (PAA).
    2 Summary of material accounting policies - continued 2.2 Insurance contracts - continued
  2. Definition and Classification
    Insurance products sold by the company are classified as insurance contracts when the company accepts significant insurance risk from a policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder. This assessment is made on a contract-by-contract basis at the contract issue date. In making this assessment, the company considers all its substantive rights and obligations, whether they arise from contract, law or regulation. The company determines whether a contract contains significant insurance risk by assessing if an insured event could cause the company to pay to the policyholder additional amounts that are significant in any single scenario with commercial substance even if the insured event is extremely unlikely or the expected present value of the contingent cash flows is a small proportion of the expected present value of the remaining cash flows from the insurance contract. The company does not issue any contracts with direct participating features.
    The company has assessed whether its portfolio of insurance contracts needs to be treated as a single contract and if there exist any embedded derivatives investment components and goods and services components, which would have to be separated and accounted for under another standard. There is currently no product with such components.
  3. Combining a set or series of contracts
    Sometimes, the company enters into two or more contracts at the same time with the same or related counterparties to achieve an overall commercial effect. The company accounts for such a set of contracts as a single insurance contract when this reflects the substance of the contracts. When making this assessment, the company considers whether:
    i· The rights and obligations are different when looked at together compared to when looked at individually. ii· The company is unable to measure one contract without considering the other.
  4. Separating components from insurance and reinsurance contracts
    In line with the requirement of IFRS 17, the company assesses its insurance and reinsurance products to determine whether they contain components which must be accounted for under another IFRS rather than IFRS 17 (distinct non-insurance components). After separating any distinct components, an entity must apply IFRS 17 to all remaining components of the (host) insurance contract.
    Currently, the company's products do not include distinct components that require separation.
    2 Summary of material accounting policies - continued 2.2 Insurance contracts - continued
  5. Level of aggregation (Unit of account)
    IFRS 17 requires an entity to determine the level of aggregation for applying its requirements. The company identifies portfolios by aggregating insurance contracts that are subject to similar risks and managed together. In grouping insurance contracts into portfolios, the company considers the similarity of risks rather than the specific labelling of product lines. The company has determined that all contracts within each product line, as defined for management purposes, have similar risks. Therefore, when contracts are managed together, they represent a portfolio of contracts. Each portfolio is subdivided into groups of contracts to which the recognition and measurement requirements of IFRS 17 are applied. At initial recognition, the company segregates contracts based on when they were issued. A cohort contains all contracts that were issued within a 12-month period. Each cohort is then further disaggregated into three groups of contracts:
    - Contracts that are onerous on initial recognition
    - Contracts that, on initial recognition, have no significant possibility of becoming onerous subsequently
    - Any remaining contracts
      For short term contracts accounted for applying the PAA, the company determines that contracts are not onerous on initial recognition, unless there are facts and circumstances indicating otherwise. As IFRS 17 does not define what "facts/circumstances" entail; the following are considered on their impact on expected cashflows and resulting profitability:
      -Significant changes in external conditions including economic or regulatory changes.
      -Changes to the organization or processes
      -Changes in underwriting and pricing strategies
      -Trends in experience and expected variability in cashflows
      This consideration is only required for Liabilities for Remaining Claims (LRC) and not Liabilities for Incurred Claims (LIC) which is already measured at the current fulfillment value. Fulfillment cashflows can be estimated at whichever aggregate level is deemed appropriate and then subsequently allocated into IFRS 17 portfolios and groups. The fact that incurred claims of a particular cohort are loss-making does not mean the LRC will also be onerous. Judgment is applied to determine whether each cohort's LRC will be similar to this incurred experience and hence onerous. For example, actions taken to improve profitability a historically loss-making cohort may indicate that the cohort will be non-onerous going forward.
      All short-term contracts have currently been assessed as having no possibility of becoming onerous. In
      subsequent periods, non-onerous contracts are re-assessed based on the likelihood of prevailing facts and circumstances leading to significant possibility of becoming onerous.
      Reinsurance contracts held are assessed for aggregation on an individual contract basis and are assessed separately from insurance contracts. The smallest unit of account is a reinsurance contract, even where this contract covers more than one type of insurance product. However, there are cases where a reinsurance contract covers separate and identifiable product lines which are only included in the same legal document for administrative convenience. These contracts have been separated into its different component.
      If two or more reinsurance contracts are written on a particular product line, these may be grouped together in the same portfolio as they will be covering risks of the same nature and will be managed together. For example, the Surplus contracts (1&2) on Fire have been grouped together as they cover risks of the same nature and can be measured under the same measurement approach (PAA because they have a contract boundary of 1 year). While, facultative and excess of loss contracts are in separate groups; though they cover the same risks and are even managed together, differing measurement approaches as well as recognition requirements may apply.
  6. Recognition
    The company recognizes groups of insurance contracts issued from the date when the first payment from a policyholder in the group becomes due. As the company adheres to the statutory "no premium no cover", the date premium is received from the policyholder will always be earlier or on the same date as the coverage period. This premium receipt date would then be used to separate the groups of insurance contracts into yearly cohorts. The contract groupings shall not be reassessed until they are derecognized.
  7. Contract Boundaries
    The company includes in the measurement of a group of insurance contracts all the future cash flows within the boundary of each contract in the group. Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the Group can compel the policyholder to pay the premiums, or in which the Group has a substantive obligation to provide the policyholder with insurance contract services. A substantive obligation to provide insurance contract services ends when:
    - The Company has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that fully reflects those risks Or
    - Both of the following criteria are satisfied:
    - The Company has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the contract and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio.
      2.2 Insurance contracts - continued
      - The pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate to periods after the reassessment date.
      A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract are not recognized. Such amounts relate to future insurance contracts.
  8. Measurement of insurance contracts issued.

Discount Rate

The time value of money and financial risk is measured separately from expected future cash flows with

changes in financial risks recognized in profit or loss at the end of each reporting period unless the Company has elected the accounting policy to present the time value of money separately in profit or loss and other comprehensive income. The Company measures the time value of money using discount rates that reflect the liquidity characteristics of the insurance contracts and the characteristics of the cash flows, consistent with observable current market prices. They exclude the effect of factors that influence such observable market prices but do not affect the future cash flows of the insurance contracts (e.g., credit risk).

In determining discount rates for cash flows, the Company uses the 'bottom-up approach' to estimate discount rates starting from a risk-free rate with similar characteristics, plus an illiquidity premium where applicable. Risk free rates are determined by reference to the yields of highly liquid FGN Bonds. The illiquidity premium is determined by reference to observable market rates, including sovereign debt, corporate debt and market swap rates. However, for the current year the company has adopted a Bottom-up approach which was adopted in setting the average discount rate for the liability valuation, having regard to the published yield curve by the Nigeria Actuarial Society (NAS) on its website or on the NAICOM website and adjusts it to reflect the illiquidity in the insurance contracts. An average spot/zero curve locked in rate of 28.20% per year was adopted to estimate the value of the future expected cashflows from the liability for incurred claims (LIC) obligations as at the valuation date. No deduction for illiquidity premium and No (additional) spread has been applied. The NAS interest curve used to discount future cash flows is derived from the published yield curve by the Nigeria Actuarial Society (NAS) on its website or on the NAICOM website and adjusts it to reflect the illiquidity in the insurance contracts with similar characteristics (in terms of timing, currency and liquidity requirements) as the future fulfillment cashflows.

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