Lasaco Assurance Plc has recorded its first Full Year operating loss in more than decade even as the insurer has the financial strength to meet its obligation to policyholders.
The company posted a loss after tax of N3.07 billion as at December 2025, from a profit of N1.52 billion as at December 2024.
Insurers are groaning under rising operating expenses brought on by spiraling claims expenses while foreign currency volatility has ballooned the replacement cost of assets.
Insurance service expenses hit N25.23 billion in December 2025, which is 21.29 percent higher than 2024’s N20.80 billion as at December 2024.
Net expenses from reinsurance contracts held spiked by 110.83 percent to N6.81 billion in the period under review from N3.23 billion as at December 2024.
In short, total insurance service expenses/net expenses from reinsurance contracts of N32.04 billion exceeded total insurance revenue of N29.98 billion, resulting in negative insurance service results of N2.07 billion.
Insurance service revenue was up 31.41 percent to N29.98 billion as at December 2025 from N22.81 billion as at December 2025.
The solvency ratio margin of Lasaco Assurance stood at 129 percent for the year ended December 2025, from 157 percent recorded in 2024, according to data gathered by MoneyCentral.
The solvency ratio is a vital financial metric that measures an insurance company’s ability to cover its liabilities (claims) and other obligations with its assets. In other words, the solvency ratio indicates whether the insurance company has enough financial resources to meet all its commitments.
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