Shareholders of Lasaco Assurance Plc have approved a N25 billion capital-raising initiative aimed at boosting the company’s financial strength and enhancing its competitiveness within the insurance sector.
The approval was granted at an Extraordinary General Meeting (EGM) held at Lasaco House, where shareholders endorsed a blend of private placement and rights issue to increase the firm’s capital base. The company disclosed this in a statement issued on Wednesday.
According to the resolutions passed, all newly issued shares will rank pari passu with existing ordinary shares, ensuring uniform rights and privileges for all investors. The meeting further authorised the board to determine the structure of the capital raise, appoint professional advisers, obtain necessary regulatory approvals, and amend the company’s memorandum and articles of association to reflect the updated capital structure.
Speaking after the approval, the Chairman of Lasaco Assurance, Maria Olateju Phillips, described the capital raise as a critical step toward strengthening the company’s long-term outlook. She noted that the initiative will enable the firm to meet regulatory requirements and reinforce its competitive position.
“We are great custodians of shareholders’ investments, and they will be impressed that we are taking these forward-looking steps,” she said. She added that the long-term benefits will be evident as improved yields and returns continue to enhance shareholder value.
Commenting on the company’s stance regarding the ongoing recapitalisation exercise in the insurance industry, the Acting Managing Director, Ademoye Shobo, stated that Lasaco’s plan reflects its commitment to sustaining both its life and non-life insurance operations.
“We have invested significantly in technology and in our people, and with the new funds, we will further expand and strengthen our position. We will be recapitalised beyond the regulatory minimum,” Shobo said.
