LASACO Assurance Plc has significantly reduced its accumulated losses, with the Group’s retained earnings deficit narrowing by 94.5% to N39.32 million as of September 30, 2026, from N710.08 million at the end of December 2025.
An analysis by Nairametrics Research of LASACO’s unaudited financial statements for the nine months ended September 30, 2026, shows that the sharp reduction in accumulated losses was driven by the insurer’s return to profitability, potentially bringing it closer to rebuilding positive retained earnings and resuming dividend payments.
However, the parent company’s retained earnings remained negative at N559.55 million, indicating that further earnings recovery will be needed before a potential return to shareholder distributions.
LASACO has not paid a dividend since July 2023, when it distributed 15 kobo per share for the 2022 financial year. LASACO has dividend paying history from 1999 and paid every year from 2017 up till 2023.
Profit recovery drives reduction in accumulated losses
LASACO’s Group accumulated losses declined from N710.08 million at the beginning of 2026 to N39.32 million at the end of September.
The improvement was supported by a profit after tax of N1.25 billion in the nine-month period, compared with a loss of N4.81 billion recorded in the corresponding period of 2025.
- Profit before tax also recovered to N1.60 billion, reversing a loss of N4.72 billion a year earlier.
The company’s profitability recovery was supported by improved insurance service performance, with insurance service expenses declining by 22.8% to N15.45 billion, while insurance revenue increased by 3.7% to N23.81 billion.
- Despite the earnings recovery, LASACO transferred N573.08 million from retained earnings to its statutory contingency reserve during the period.
- The transfer increased the reserve from N4.26 billion at the beginning of the year to N4.83 billion as of September 2026.
The movement illustrates how statutory reserve requirements can reduce the portion of reported profits retained as accumulated earnings available for potential future distributions.
Parent company’s accumulated deficit also narrows
Although the Group’s accumulated losses are close to being eliminated, the parent company’s figures present a more cautious picture.
- LASACO Assurance Plc’s standalone accumulated losses declined by approximately 50.8% to N559.55 million as of September 2026, compared with N1.14 billion at the end of December 2025.
- The reduction followed a parent-company profit after tax of N1.15 billion, partly offset by the N573.08 million transfer to statutory contingency reserves.
The distinction between Group and Company retained earnings is significant because dividend-paying capacity depends particularly on the distributable profits of the legal entity declaring the dividend, rather than consolidated earnings alone.
Consequently, while the Group’s accumulated deficit has nearly disappeared, the parent company’s remaining deficit suggests that LASACO has not yet fully rebuilt its retained earnings position.
LASACO last paid dividends in 2023
The improvement in accumulated losses comes after several years without dividend distributions to shareholders.
LASACO’s last recorded dividend payment was in July 2023, when shareholders received 15 kobo per share, amounting to approximately N183 million for the 2022 financial year.
The insurer subsequently made no dividend distributions for the 2023, 2024 and 2025 financial years.
For the financial year ended December 2025, the company’s directors did not recommend a dividend, following a difficult earnings period.
The recovery in profitability and reduction in accumulated losses could therefore be an important development for shareholders anticipating a return to dividend payments.
However, the company has not announced a new dividend, and any future distribution would depend on sustained profitability, sufficient distributable reserves, regulatory capital requirements and the necessary corporate approvals.
Capital raise strengthens LASACO’s financial position
LASACO’s improvement in accumulated losses comes alongside a substantial strengthening of its capital base following a fresh equity injection.
Nairametrics earlier reported that the insurer raised N18.10 billion through the issuance of shares during earlier in 2026, significantly improving its financial position.
The capital injection helped lift shareholders’ funds to N39.71 billion as of September 2026, from N20.36 billion at the end of 2025.
The insurer’s cash and cash equivalents also increased to N33.76 billion from N14.82 billion over the same period.
However, while the equity injection strengthened LASACO’s capital base and liquidity, it does not directly constitute distributable earnings, as share capital and share premium are separate from retained earnings.