Lasaco Assurance has announced raising about N11.1bn in fresh capital via private placement ahead of the 2026 deadline for recapitalisation, even as it paid about N13.1bn to policyholders as claims in 2024.
This was disclosed at the 45th Annual General Meeting of the company held in Ikeja, Lagos, on Thursday.
The PUNCH reports that the signing of the Nigerian Insurance Industry Reform Act 2025 has increased the capital thresholds for insurance operators. According to NIIRA 2025, the minimum capital base for non-life insurers has been raised to N15bn, while the capital requirement for life insurance firms is now at least N10bn. Reinsurance companies’ new capital threshold was increased to N35bn.
According to the firm, the N13.1bn claims paid represented over 50 per cent of the N22.82bn insurance revenue generated in the 2024 financial year.
Speaking on the floor of the AGM, the chairman, Mrs. Teju Phillips, disclosed that the fresh capital, N11.1bn, was raised via a private placement with an additional 9.25 million shares.
The firm’s Insurance Revenue rose to N22.82bn, representing a 25 per cent increase from N18.29bn in 2023, a growth she attributed to market penetration and enhanced customer engagement.
Profit after tax rose to N1.54bn, reflecting an 18 per cent increase from N1.31bn within the period under review, an achievement she said underscores the company’s disciplined cost optimisation and operational efficiency.
Phillips reassured shareholders that Lasaco Assurance is driving digital transformation and innovation by investing in various software and omnichannel customer engagement to enhance efficiency and accessibility.
The company remains committed to sustainability by expanding retail insurance solutions through targeted policy offerings. Market expansion efforts focus on strengthening current market deepening and leveraging strategic partnerships to deepen reach.
“Furthermore, we are actively exploring strategic alliances to co-create embedded insurance products, aligning with Nigeria’s expanding digital economy,” she said.
Philipps also added that to ensure long-term competitiveness, the company is upskilling its workforce even as risk management and governance frameworks are being enhanced through robust stress-testing measures to mitigate currency volatility, regulatory shifts and geopolitical uncertainties.
Responding to the shareholders’ concerns on recapitalisation, the Managing Director/Chief Executive Officer, Mr. Razzaq Abiodun, assured them that the insurer is on the right track to recapitalise both its life and non-life businesses.
With shareholders’ funds of the company now in excess of N21.4bn, he added that the additional N11.1bn in fresh capital raised is also a move in this direction.
“We are doing everything possible to meet the deadline. The company will continue to operate with both life and non-life licences. The recapitalisation plans submitted to the National Insurance Commission exceeded the regulatory capital benchmark, a sign that the company is moving in the right direction. “The process of recapitalisation is currently ongoing, and we believe we will conclude all the necessary processes and documentation before the deadline slated for next year,” the Lasaco Assurance MD enthused.
