LASACO Assurance Plc has returned to profit, reporting Group pre-tax earnings of N1.60 billion for the nine months ended September 30, 2026, compared with a N4.72 billion loss in the corresponding period of 2025.
Its unaudited consolidated financial statements show that the recovery was driven mainly by lower insurance service expenses and net reinsurance costs, while insurance revenue grew modestly.
These changes lifted the insurance service result to a N5.84 billion profit from a N2.44 billion loss a year earlier, offsetting weaker investment income and higher running costs.
Key Highlights
- Insurance revenue: N23.81 billion (Up 3.71% year on year from N22.96 billion).
- Insurance service expenses: N15.45 billion, compared with N20.01 billion a year earlier, a reduction of approximately 22.79%
- Net expenses from reinsurance contracts held: N2.52 billion, down 53.29% from N5.38 billion
- Insurance service result: N5.84 billion profit, compared with a loss of N2.44 billion in the corresponding period of 2025
- Net investment results: N2.47 billion (Down 8.87% from N2.72 billion).
- Profit before tax: N1.60 billion, compared with a loss before tax of N4.72 billion in 2025.
Driving the numbers
LASACO’s return to profit came mainly from lower costs in its insurance business, rather than a sharp increase in revenue.
- Insurance revenue grew 3.71% to N23.81 billion, while insurance service expenses fell 22.79% to N15.45 billion. Net reinsurance expenses the cost of sharing risks with other insurers after related recoveries also declined 53.29% to N2.52 billion.
- Together, these changes left LASACO with N5.84 billion from insurance operations, compared with a N2.44 billion loss a year earlier. This was the main driver of its return to a N1.60 billion pre-tax profit.
- However, some of that improvement was absorbed elsewhere in the business.
- Net investment income fell 8.87% to N2.47 billion. Interest income declined to N2.33 billion from N2.58 billion, while dividends received fell to N73.02 million from N96.71 million.
Running costs also increased 13.02% to N6.30 billion, and other operating income dropped to N32.83 million from N812.74 million. These pressures limited how much improvement in insurance operations reached the bottom line.
After tax, the Group earned N1.25 billion, compared with a N4.81 billion loss in the corresponding period of 2025.
Balance sheet strengthened by fresh capital
Alongside the earnings recovery, LASACO’s balance sheet expanded substantially following its rights issue.
- Total assets increased 56.03% to N61.23 billion at September 2026 from N39.24 billion at December 2025. Shareholders’ funds rose 95.02% to N39.71 billion from N20.36 billion, while liabilities increased more moderately, by 13.99% to N21.52 billion.
The increase in shareholders’ funds came largely from N18.10 billion raised through issuing shares. This gave the company additional resources, beyond the profit earned during the period, to support its business.
- Cash and cash equivalents reached N33.76 billion, up from N14.82 billion at December. LASACO also held N2.54 billion in statutory deposits, which are restricted funds unavailable for everyday spending.
Profit recovery has yet to produce positive operating cash flow
The cash-flow statement shows that LASACO received N25.93 billion in premiums from policyholders during the nine months. It paid N7.67 billion in reinsurance premiums and N9.93 billion in claims and other expenses.
After commissions, staff costs, other payments and receipts, operating activities used N416.82 million in cash.
This means that although LASACO reported a profit, its operations still paid more cash than they brought in during the period. The N18.10 billion raised from shareholders was therefore important to the stronger cash position.
The recovery in insurance earnings is encouraging. The next test is whether LASACO can sustain that improvement, contain rising running costs, and generate cash from its operations as it puts the additional capital to work.
Market reaction
Lasaco Assurance share price closed at N1.90 on Tuesday, October 20. It began the year with a share price of N2.45, reflecting 22.5% YtD loss