Lasaco Assurance Plc has kicked off 2025 with strong momentum, doubling its shareholders’ fund to ₦24.14 billion, a 101% increase compared to Q1 2024. The surge reflects improved earnings, a solid balance sheet, and growing confidence from investors.
According to its unaudited Q1 financials, Lasaco also recorded a 44% jump in total assets to ₦45.68 billion, while keeping liabilities under control with just a 9% increase. The company’s core insurance business performed well, with gross insurance revenue climbing 59% to ₦10.44 billion, thanks to strong demand in fire, motor, and oil & gas segments.
Though insurance service expenses rose sharply by 72% due to higher claims and commissions, Lasaco still posted ₦1.92 billion in service results, nearly double year-on-year. Reinsurance losses dropped 12%, easing cost pressure and contributing to a 20% boost in combined net insurance and investment income.
Lasaco ended the quarter with a ₦1.62 billion pre-tax profit, up 24%. However, net investment income dipped 30%, hit by lower returns on treasury investments amid tight monetary conditions.
Despite that, the insurer’s underwriting strength continues to shine. The underwriting margin rose to 18.4%, up from 15.1% a year ago, showing better pricing and risk selection. The combined ratio hit 88%, indicating underwriting profitability.
With a return on equity of 6.7% (annualized) down from 10.9% due to a higher capital base, Lasaco now has deeper financial capacity to take on bigger underwriting risks and grow its presence in a market where insurance penetration is still below 1% of GDP.
Though still compliant with NGX listing rules, Lasaco’s ownership structure with over 70% held by Ibile Holdings and Canon Properties may raise governance considerations as it expands.
Still, with a strong balance sheet and improved operating margins, Lasaco looks positioned to chase market share while adapting to Nigeria’s evolving insurance landscape. Sustaining underwriting discipline and optimizing its investment portfolio will be key to unlocking its next phase of growth.
