Lasaco Assurance Raises ₦11.1 Billion to Strengthen Its Capital Base Ahead of 2026 Recapitalisation Deadline
Detailed Breakdown:
Lasaco Assurance Plc has successfully raised ₦11.1 billion through a private placement as part of its recapitalisation efforts ahead of the 2026 deadline set by regulators.
This strategic move positions the company strongly to meet the new capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which raised the bar for operators across the insurance sector.
⚖️ Background: The New Capital Rules
The NIIRA 2025 significantly increased the minimum capital thresholds for insurance operators:
• Non-life insurers: ₦15 billion
• ❤️ Life insurers: ₦10 billion
• Reinsurance companies: ₦35 billion
These new rules were designed to strengthen the financial resilience of insurance companies and enhance their ability to settle claims promptly.
Capital Raise and Financial Performance
At the company’s 45th Annual General Meeting (AGM) held in Ikeja, Lagos, the Chairman, Mrs. Teju Phillips, announced that the ₦11.1 billion capital raise was achieved through private placement involving the issuance of 9.25 million new shares.
She also highlighted strong financial performance for the 2024 financial year:
• Insurance Revenue: ₦22.82 billion — up 25% from ₦18.29 billion in 2023.
• Profit After Tax: ₦1.54 billion — an 18% rise from ₦1.31 billion in 2023.
• Claims Paid: ₦13.1 billion — representing over 50% of the company’s total revenue, underscoring its commitment to policyholders.
Phillips attributed this growth to enhanced market penetration, increased customer engagement, and operational efficiency.
Digital Transformation and Innovation Drive
Lasaco Assurance is actively pursuing a digital transformation strategy aimed at improving service delivery and accessibility.
According to the chairman, the company is:
• Investing in new software and omnichannel engagement platforms.
• Expanding retail insurance solutions tailored to customer needs.
• Building strategic partnerships to create embedded insurance products aligned with Nigeria’s growing digital economy.
This forward-looking approach ensures Lasaco stays competitive in a rapidly changing financial landscape. ⚙️
Sustainability and Workforce Development
Beyond profit growth, the company is focusing on long-term sustainability by:
• Upskilling its workforce to adapt to technological and regulatory shifts.
• Strengthening risk management frameworks to handle currency volatility, changing regulations, and geopolitical risks.
• Embedding governance best practices to protect shareholder value and ensure compliance.
Recapitalisation Progress and Assurance
During the AGM, the Managing Director/CEO, Mr. Razzaq Abiodun, reaffirmed the company’s strong position to meet and exceed the recapitalisation requirements.
He disclosed that Lasaco’s shareholders’ funds now exceed ₦21.4 billion, and the new ₦11.1 billion raised further strengthens its balance sheet.
“We are doing everything possible to meet the deadline. Our recapitalisation plans already surpass the regulatory benchmark, and we are confident of concluding all processes before 2026,” Abiodun assured shareholders.
This means Lasaco will continue to operate with both life and non-life insurance licenses, ensuring broader service coverage and stronger market presence.
Outlook and Strategic Focus
Lasaco’s recapitalisation journey underscores its financial strength, commitment to innovation, and readiness for Nigeria’s next phase of insurance industry transformation.
The company’s continued investment in technology, partnerships, and human capacity suggests it is positioning itself not just to meet regulatory demands, but to lead industry growth in the coming years.
✨ In Summary
Lasaco Assurance’s ₦11.1 billion capital raise is more than a compliance move — it’s a bold statement of confidence in the Nigerian insurance market. With strong financial results, digital innovation, and a proactive recapitalisation strategy, Lasaco is well on its way to becoming one of the most resilient and forward-looking insurance firms in the country.
Detailed Breakdown:
Lasaco Assurance Plc has successfully raised ₦11.1 billion through a private placement as part of its recapitalisation efforts ahead of the 2026 deadline set by regulators.
This strategic move positions the company strongly to meet the new capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which raised the bar for operators across the insurance sector.
⚖️ Background: The New Capital Rules
The NIIRA 2025 significantly increased the minimum capital thresholds for insurance operators:
• Non-life insurers: ₦15 billion
• ❤️ Life insurers: ₦10 billion
• Reinsurance companies: ₦35 billion
These new rules were designed to strengthen the financial resilience of insurance companies and enhance their ability to settle claims promptly.
Capital Raise and Financial Performance
At the company’s 45th Annual General Meeting (AGM) held in Ikeja, Lagos, the Chairman, Mrs. Teju Phillips, announced that the ₦11.1 billion capital raise was achieved through private placement involving the issuance of 9.25 million new shares.
She also highlighted strong financial performance for the 2024 financial year:
• Insurance Revenue: ₦22.82 billion — up 25% from ₦18.29 billion in 2023.
• Profit After Tax: ₦1.54 billion — an 18% rise from ₦1.31 billion in 2023.
• Claims Paid: ₦13.1 billion — representing over 50% of the company’s total revenue, underscoring its commitment to policyholders.
Phillips attributed this growth to enhanced market penetration, increased customer engagement, and operational efficiency.
Digital Transformation and Innovation Drive
Lasaco Assurance is actively pursuing a digital transformation strategy aimed at improving service delivery and accessibility.
According to the chairman, the company is:
• Investing in new software and omnichannel engagement platforms.
• Expanding retail insurance solutions tailored to customer needs.
• Building strategic partnerships to create embedded insurance products aligned with Nigeria’s growing digital economy.
This forward-looking approach ensures Lasaco stays competitive in a rapidly changing financial landscape. ⚙️
Sustainability and Workforce Development
Beyond profit growth, the company is focusing on long-term sustainability by:
• Upskilling its workforce to adapt to technological and regulatory shifts.
• Strengthening risk management frameworks to handle currency volatility, changing regulations, and geopolitical risks.
• Embedding governance best practices to protect shareholder value and ensure compliance.
Recapitalisation Progress and Assurance
During the AGM, the Managing Director/CEO, Mr. Razzaq Abiodun, reaffirmed the company’s strong position to meet and exceed the recapitalisation requirements.
He disclosed that Lasaco’s shareholders’ funds now exceed ₦21.4 billion, and the new ₦11.1 billion raised further strengthens its balance sheet.
“We are doing everything possible to meet the deadline. Our recapitalisation plans already surpass the regulatory benchmark, and we are confident of concluding all processes before 2026,” Abiodun assured shareholders.
This means Lasaco will continue to operate with both life and non-life insurance licenses, ensuring broader service coverage and stronger market presence.
Outlook and Strategic Focus
Lasaco’s recapitalisation journey underscores its financial strength, commitment to innovation, and readiness for Nigeria’s next phase of insurance industry transformation.
The company’s continued investment in technology, partnerships, and human capacity suggests it is positioning itself not just to meet regulatory demands, but to lead industry growth in the coming years.
✨ In Summary
Lasaco Assurance’s ₦11.1 billion capital raise is more than a compliance move — it’s a bold statement of confidence in the Nigerian insurance market. With strong financial results, digital innovation, and a proactive recapitalisation strategy, Lasaco is well on its way to becoming one of the most resilient and forward-looking insurance firms in the country.