Lasaco Assurance Plc returned to profitability in the first nine months of 2026, posting a profit after tax of N1.25 billion, compared with a loss of N4.81 billion in the corresponding period of 2025, as lower insurance service expenses and reinsurance costs strengthened its underwriting performance.
The insurer’s unaudited financial statements for the period ended September 30, 2026, show that profit before tax rose to N1.60 billion from a loss of N4.72 billion a year earlier, representing a turnaround of N6.32 billion.
The recovery came despite modest growth in insurance revenue and a decline in investment returns, suggesting that improved control of insurance-related costs played a central role in restoring the company’s profitability.
Insurance revenue increased by 3.7 percent to N23.81 billion from N22.96 billion in the same period of 2025. However, insurance service expenses fell by 22.8 percent to N15.45 billion from N20.01 billion, reducing the cost burden associated with providing insurance coverage.
Net expenses from reinsurance contracts held also declined by 53.3 percent to N2.52 billion from N5.38 billion, further supporting the company’s insurance service performance.
These changes lifted insurance service results to a positive N5.84 billion from a loss of N2.44 billion in the corresponding period last year, marking a significant improvement in the insurer’s core underwriting performance.
Investment income moderates recovery
Despite the improvement in its insurance operations, Lasaco’s investment performance weakened during the period, partly offsetting gains from underwriting.
Net investment results declined by 8.9 percent to N2.47 billion from N2.72 billion in the corresponding period of 2025.
Interest revenue calculated using the effective interest method fell to N2.33 billion from N2.58 billion, while dividend income declined to N73.02 million from N96.71 million.
The company, however, recorded a net fair value gain of N210.87 million, compared with N66.48 million a year earlier, cushioning some of the decline in investment income.
Foreign exchange losses widened to N136.20 million from N25.20 million, adding another drag on investment performance.
Nevertheless, the stronger insurance service result helped lift net insurance and investment results to N7.87 billion from just N43.53 million in the first nine months of 2025.
The turnaround was also supported by a reduction in net finance expenses associated with insurance contracts, which increased to a net expense of N448.69 million from N235.98 million in the prior-year period.
Operating expenses rose by 13 percent to N6.30 billion from N5.57 billion, indicating that higher operating costs continued to weigh on the company’s earnings even as its insurance operations improved.
Other operating income also fell sharply to N32.83 million from N812.74 million, limiting the contribution of non-insurance income to the recovery.
After accounting for income tax of N354.70 million, the insurer reported a profit after tax of N1.25 billion, reversing the N4.81 billion loss recorded in the corresponding period of 2025.
Assets rise as capital base expands
Beyond the earnings recovery, Lasaco reported substantial growth in its balance sheet, with total assets increasing by 56 percent to N61.23 billion as of September 30, 2026, from N39.24 billion at the end of the comparable period in 2025.
Cash and cash equivalents more than doubled to N33.76 billion from N14.82 billion, making cash the company’s largest reported asset category.
The increase in cash holdings strengthened the insurer’s reported liquidity position, although cash balances alone do not establish the adequacy of funds available to meet future claims and other obligations.
Reinsurance contract assets rose to N5.47 billion from N4.02 billion, while investment properties remained broadly unchanged at N10.56 billion.
The company’s statutory deposit increased to N2.54 billion from N535.15 million, while financial assets measured at amortised cost declined to N1.15 billion from N2.13 billion.
Total liabilities increased by 14 percent to N21.52 billion from N18.88 billion, reflecting a rise in insurance contract liabilities to N17.41 billion from N15.26 billion.
Shareholders’ funds climbed to N39.71 billion from N20.36 billion, supported by an increase in share capital and share premium during the period.
Lasaco’s issued and fully paid share capital rose to N10.16 billion from N5.54 billion, following the issuance of additional shares. Share premium increased to N23.37 billion from N9.89 billion.
Ownership concentration increases
The insurer’s shareholding structure also changed during the period, with Ibile Holdings Limited increasing its stake to 51 percent from 45.93 percent at the end of 2025.
Canon Properties & Investments Limited raised its holding to 36.21 percent from 24.66 percent, while De-Lexus Investment Limited no longer appeared among shareholders holding at least five percent.
Together, Ibile Holdings and Canon Properties accounted for 87.21 percent of Lasaco’s issued shares as of September 30, 2026, up from 78.48 percent at the end of December 2025.
The company’s free float consequently declined to 12.78 percent from 21.52 percent, leaving a smaller proportion of its shares available for trading by other investors.
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Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
