Lasaco Assurance shareholders' funds rise to N22.11bn amidst recapitalisation

Underwriting firm, Lasaco Assurance Plc has grown its insurance revenue to N22.8 billion in 2024 financial year, moving from N18.3 billion in 2023, indicating a 25 percent increase, just as Profit After Tax (PAT) also grew by 18 percent to N1.54 billion, from N1.3 billion the previous year, indicating a 25 percent increase.

Teju Phillips, chairman of the board who disclosed this at the Company’s 45th virtual Annual General Meeting held in Lagos said, Lasaco Assurance demonstrated remarkable resilience and financial robustness amid a challenging macroeconomic climate.

The Company had a good business year in terms of investment income, as its net income grew by 104 percent to N8.73 billion, as against N4.3 billion in 2023.

“Our operational performance in 2024 underscored our ability to navigate economic headwinds while delivering sustainable values”

Phillips stated that Lasaco Assurance insurance revenue was driven by market penetration and enhanced customer engagement.

In reaffirming its commitment to shareholders, the company incurred claims amounting to N13.19 billion in 2024, a 13 percent increase from claims paid in 2023, while total asset of the company rose to N30.94 billion, from N26.97 billion, indicating a 16 percent year-on-year growth.

“While rising regulatory compliance costs and inflationary impacts exerted pressure on our PAT, our balance sheet strength and liquidity position remain robust, ensuring our ability to capitalize on emerging opportunities”.

Phillips during the meeting informed shareholders that its effort to raise additional capital yielded positive result.

‘The sum of N11.1 billion was raised through a private placement , adding an additional 8.25 million shares to our existing shares, noting that this will enable the company perform and compete better in the insurance industry.

The board chair said going into the future, Lasaco Assurance is entering a pivotal phase of transformation, driven by innovation, digitisation and sustainability.

To ensure long -term competitiveness, the Company is up skilling its workforce. Risk management and governance framework are being enhanced through robust stress-testing measures to mitigate currency volatility, regulatory shifts, and geopolitical uncertainties”.

She also informed that Lasaco will be exploring strategic alliances to co-create embedded insurance products aligning with Nigeria’s expanding digital economy.

Razzaq Abiodun, managing director, Lasaco Assurance responding to shareholders question on the on-going insurance industry recapitalisation, said the Company will meet the regulatory capital requirement ahead of 31st July 2026 deadline.

Abiodun said the Company is very intentional about financial capabilities to deliver efficient service, stating that it was the reason the company in the past year raised over N11 billion ahead of the new capital requirement.

He expressed commitment of the board to recapitalise the Company, stating that it is a decision of the board to retain its life and general insurance licences.