Lasaco Assurance Plc has returned to the path of profitability on the back of improved claims pressure as the insurer has got the financial strength to meet its debt obligations.
The first insurer to post its financial statement on the stock exchange posted a profit of N384.86 million in the first six months of 2026, from a loss after tax of N731.45 million as at June 2025.
This stellar performance that gives shareholders a glimmer of hope that dividend will be paid came amid a drop in insurance revenue, and there has been a reduction in claims expenses.
For instance, total insurance expenses were down 20.55 percent to N10.85 billion in June 2026 from N13.08 billion the previous year.
Total expenses were down 15.84 percent to N5.26 billion in the period under review from N6.25 billion as at June 2025.
Analysts attribute the drop in claims expenses to easing inflationary pressure and stability in the foreign exchange market which lowered the replacement price of insured assets.
Nigeria’s headline inflation rate eased to 15.91 percent in June 2026, down slightly from 15.93 percent in May 2026, according to the National Bureau of Statistics.
Nigerian government bond interest rates hover around 18.27 percent for the 10-year Federal Government (FGN) bond yield. Actual coupon rates for FGN bonds range between 8.50 percent and 17.25 percent, depending on the maturity date and issuance series. Yields across other tenors generally range between 17.7 percent and 18.2 percent.
The solvency margin ratio of Lasaco Assurance stood at 244 percent, though lower than 248 percent recorded in 2025 is above the regulatory threshold, according to data gathered by MoneyCentral.
A strong solvency margin ratio indicates an insurer has the financial strength to meet its obligations to policyholders or other liabilities without undermining its capital position.
To meet the Nigerian Insurance Industry Reform Act (NIIRA) 2025 mandates that requires sector operations to scale up their capital, Lasaco Assurance has raised N19.30 billion through an oversubscribed rights issue in July 2026.
Advancing the capital raise has helped increased the company’s minimum share capital to N36.08 billion.
The company’s insurance revenue fell by 3.25 percent to N16.34 billion in the period under review from N16.89 billion the previous year.
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