LASACO Assurance Plc has returned to profit, posting Group pre-tax earnings of N1.60 billion for the nine months ended September 30, 2026, against a loss of N4.72 billion in the corresponding period of 2025.
Its unaudited consolidated financial statements show that the turnaround was driven mainly by lower insurance service expenses and net reinsurance costs, while insurance revenue grew modestly.
These changes lifted the insurance service result to a profit of N5.84 billion from a loss of N2.44 billion a year earlier, offsetting weaker investment income and higher running costs.
LASACO’s return to profit came mainly from lower costs in its insurance business, rather than a sharp rise in revenue.
Insurance revenue grew by 3.71 per cent to N23.81 billion, while insurance service expenses fell by 22.79 per cent to N15.45 billion. Net reinsurance expenses, which represent the cost of sharing risks with other insurers after related recoveries, also declined by 53.29 per cent to N2.52 billion.
Together, these changes left LASACO with N5.84 billion from insurance operations, compared with a loss of N2.44 billion a year earlier. This was the main driver of its return to a pre-tax profit of N1.60 billion.
However, some of that improvement was absorbed elsewhere in the business.
Net investment income fell by 8.87 per cent to N2.47 billion. Interest income declined to N2.33 billion from N2.58 billion, while dividends received dropped to N73.02 million from N96.71 million.
Running costs also rose by 13.02 per cent to N6.30 billion, and other operating income fell to N32.83 million from N812.74 million. These pressures limited how much of the improvement in insurance operations reached the bottom line.
After tax, the Group earned N1.25 billion, compared with a loss of N4.81 billion in the corresponding period of 2025.
Alongside the earnings recovery, LASACO’s balance sheet expanded substantially following its rights issue.
Total assets increased by 56.03 per cent to N61.23 billion at September 2026 from N39.24 billion at December 2025. Shareholders’ funds rose by 95.02 per cent to N39.71 billion from N20.36 billion, while liabilities grew more moderately, by 13.99 per cent to N21.52 billion.
The increase in shareholders’ funds came largely from N18.10 billion raised through the issuance of shares. This gave the company additional resources, beyond the profit earned during the period, to support its business.
Cash and cash equivalents reached N33.76 billion, up from N14.82 billion at December. LASACO also held N2.54 billion in statutory deposits, which are restricted funds not available for everyday spending.
The profit recovery has yet to produce positive operating cash flow. The cash-flow statement shows that LASACO received N25.93 billion in premiums from policyholders during the nine months. It paid N7.67 billion in reinsurance premiums and N9.93 billion in claims and other expenses.
After commissions, staff costs, other payments and receipts, operating activities used N416.82 million in cash.
This means that although LASACO reported a profit, its operations still paid out more cash than they brought in during the period. The N18.10 billion raised from shareholders was therefore important to the stronger cash position.
The recovery in insurance earnings is encouraging. The next test is whether LASACO can sustain that improvement, contain rising running costs and generate cash from its operations as it puts the additional capital to work.
LASACO Assurance’s share price closed at N1.90 on Tuesday, October 20. It began the year at N2.45, a year-to-date loss of 22.5 per cent.
