Lasaco Assurance Plc has strengthened its financial capacity with an N18.47 billion rights issue, giving the insurer additional room to pursue larger risks and compete more effectively in Nigeria’s evolving insurance market.
The successful capital raise, disclosed at the company’s 2025 Annual General Meeting in Lagos, has significantly increased shareholders’ funds and positioned Lasaco to meet the new capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Chairman of Lasaco Assurance, Babatunde Dabiri, described the successful rights issue as a major step in the company’s recapitalisation programme and evidence of investors’ confidence in its strategy, governance and management.
Dabiri, who was represented at the AGM by Non-Executive Director Tobi Lawal, said the additional capital had created a stronger financial cushion for the company as the insurance industry moves towards greater consolidation.
He said the board regarded the ongoing recapitalisation exercise as more than a regulatory obligation, describing it as an opportunity for insurers to build stronger businesses and create sustainable value for shareholders.
Capital to support specialised risks
According to Dabiri, the strengthened balance sheet would enable Lasaco to take on larger and more complex corporate risks across critical sectors of the economy.
He identified energy, oil and gas, aviation and infrastructure among the areas where the company intends to expand its capacity.
The chairman said the additional capital would also increase Lasaco’s ability to retain a greater proportion of the premiums generated from its business, while reducing its long-term reliance on foreign reinsurance arrangements.
A stronger domestic retention capacity, he added, could help the company reduce exposure to foreign exchange pressures and improve the sustainability of its operations.
Dabiri assured shareholders that the company’s future remained secure, saying its stronger capital position had provided the financial foundation required to pursue its growth strategy.
Focus shifts to profitability
With the recapitalisation exercise substantially strengthening its financial position, Lasaco’s management is now turning its attention to improving profitability and underwriting performance.
Dabiri said the company’s strategy would focus on rebuilding sustainable earnings, improving underwriting margins, controlling operating expenses and delivering stronger returns to shareholders.
Management has consequently commenced the implementation of a five-pillar strategic plan designed to convert the additional capital into long-term business growth.
Reinsurance strategy gets priority
One of the key areas of the strategy is the optimisation of reinsurance arrangements.
The company plans to renegotiate and restructure specialised treaty arrangements in a bid to increase domestic risk retention and reduce the cost of outward reinsurance.
The approach is also expected to help Lasaco minimise the impact of foreign exchange fluctuations on its business.
The company believes greater retention of risks within the domestic market will strengthen its underwriting capacity while improving the efficiency of its capital deployment.
New products, wider market reach
Lasaco is also targeting deeper penetration of the insurance market through product innovation and expansion into potentially higher-margin segments.
Dabiri disclosed that the company had already introduced six new products as part of its growth strategy.
Management plans to increase its presence in retail insurance and specialised corporate markets through customer-focused products, stronger relationships with brokers and technology-enabled distribution channels.
The strategy is aimed at widening the company’s customer base while creating additional sources of premium income.
Digital transformation
Technology is another major component of Lasaco’s expansion plans.
The insurer intends to continue investing in its core digital infrastructure, including artificial intelligence-powered automation and digital platforms aimed at improving customer interactions.
According to the company, greater automation should help streamline internal processes, enhance service delivery and reduce processing costs.
The digital strategy is expected to complement the company’s efforts to expand distribution and make insurance products more accessible to customers.
Cost discipline
Alongside revenue expansion, Lasaco plans to maintain tighter control over its operating expenses.
Management is introducing closer expense monitoring, productivity benchmarks and lean-management practices across its branches, locations and subsidiaries.
The objective is to ensure that the benefits of the fresh capital are not eroded by inefficient operating costs.
With the recapitalisation completed, Lasaco is therefore positioning itself for the next phase of competition in Nigeria’s insurance industry one focused not simply on meeting regulatory capital requirements but on using a stronger balance sheet to retain more risks, enter specialised markets, improve efficiency and generate sustainable value for shareholders.
