Lasaco Assurance Plc grew its shareholders’ fund by 101 percent in the first quarter of 2025, signaling renewed investor confidence and balance sheet strength as the insurance firm positions for long-term growth in Nigeria’s low-penetration market.
The company’s equity surged to N24.14 billion from N12.02 billion a year earlier, driven by higher retained earnings and improved operational margins. This comes as the insurer’s total assets rose by 44 percent to N45.68 billion, while total liabilities increased by a modest 9 percent to N21.55 billion, according to its unaudited Q1 results.
Lasaco’s core business showed resilience, with gross insurance revenue rising 59 percent to N10.44 billion, largely on the back of growth in fire, motor, and oil & gas policies.
Despite a sharp 72 percent rise in insurance service expenses to N7.39 billion due to increased claims and commission costs, insurance service results nearly doubled to N1.92 billion.
Reinsurance losses fell 12 percent to N1.13 billion, reducing cost pressure and supporting a 20 percent growth in net insurance and investment income, which reached N2.94 billion.
Profit before tax stood at N1.62 billion, up 24 percent year-on-year, while net investment income fell by 30 percent to N1.02 billion. Analysts attribute the drop to lower returns from treasury assets amid high inflation and tighter monetary policy.
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Key performance ratios show a stronger business as return on equity (annualised) stood at 6.7 percent, down from 10.9 percent due to expanded capital base.
Combined ratio (estimated) rose 88 percent, indicating underwriting profitability while underwriting margin improved to 18.4 percent from 15.1 percent in Q1 2024.
“The balance sheet is strong, and Lasaco now has the capital depth to take bigger underwriting bets,” a Lagos-based insurance analyst told BusinessDay. “But the drop in investment returns is a reminder that insurers can’t rely solely on float income anymore.”
With a free float of 47.4 percent, Lasaco remains compliant with NGX listing rules. However, substantial insider ownership — Ibile Holdings and Canon Properties together control over 70 percent — could raise governance concerns as the firm seeks to scale.
Lasaco’s financials suggest it is better equipped to pursue market expansion and comply with tougher capital and solvency rules. With Nigeria’s insurance penetration still under 1 percent of GDP, analysts say players like Lasaco must aggressively convert informal risks into formal coverage to unlock value.
If Lasaco sustains its underwriting discipline and rebalances its investment portfolio for higher yield, it may emerge as one of the few mid-tier insurers with both solvency strength and market reach to benefit from Nigeria’s insurance gap.
