Lasaco Assurance Plc has reported a sharp increase in shareholders’ equity, which surged to ₦24.14 billion in Q1 2025, up from ₦12.02 billion a year earlier. The growth was driven by improved operational margins and a boost in retained earnings, according to the company’s unaudited financial results.
The insurer’s total assets climbed 44 percent to ₦45.68 billion, while total liabilities rose by a modest 9 percent to ₦21.55 billion, reinforcing balance sheet strength.
Core Business Growth Outpaces Cost Pressures
Lasaco’s core insurance operations showed strong performance, with gross insurance revenue rising 59 percent year-on-year to ₦10.44 billion, fueled by gains in fire, motor, and oil & gas policies.
Although insurance service expenses surged 72 percent to ₦7.39 billion due to increased claims and commission payouts, the insurance service result nearly doubled to ₦1.92 billion, highlighting improved underwriting efficiency.
Reinsurance losses dropped 12 percent to ₦1.13 billion, helping to ease cost pressures and contributing to a 20 percent increase in net insurance and investment income, which reached ₦2.94 billion.
Despite a 30 percent decline in net investment income to ₦1.02 billion, attributed to lower returns from treasury assets amid inflation and tighter monetary policy profit before tax rose 24 percent to ₦1.62 billion.
Key Ratios Reflect Resilience and Growth Potential
Lasaco’s annualised return on equity fell to 6.7 percent, down from 10.9 percent, due to its expanded capital base. Meanwhile, the combined ratio rose to 88 percent, indicating underwriting profitability. The underwriting margin improved to 18.4 percent, up from 15.1 percent in Q1 2024.
“The balance sheet is strong, and Lasaco now has the capital depth to take bigger underwriting bets,” said a Lagos-based insurance analyst. “But the drop in investment returns is a reminder that insurers can’t rely solely on float income anymore.”
Corporate Structure and Market Outlook
Lasaco maintains compliance with Nigerian Exchange (NGX) listing requirements with a free float of 47.4 percent. However, the firm’s governance could come under scrutiny, as Ibile Holdings and Canon Properties collectively hold over 70 percent of insider shares.
Analysts say Lasaco’s improved financial position positions it well to meet more stringent capital and solvency requirements, especially as Nigeria’s insurance penetration remains below 1 percent of GDP.
To unlock market value, experts urge mid-tier players like Lasaco to convert informal risks into formal coverage, expand customer reach, and rebalance investment portfolios for higher returns.
“If Lasaco sustains underwriting discipline and adapts its investment strategy, it could emerge as one of the few mid-sized insurers with both solvency strength and the reach to benefit from Nigeria’s insurance growth potential,” the analyst added.
