Lasaco Assurance’s consistent solvency ratio growth in the last four years indicates that the insurer has the financial strength to absorb all claims and other liabilities and validates its positive ratings in the insurance industry.
As at 30th September, 2022 the Company showed a positive solvency margin of N11.49 billion and a solvency ratio of 230% which is higher than the regulators minimum capital adequacy of requirements of N5 billion.
Drilling through the financial statement of the company shows a recorded solvency ratio of 219 percent in 2021; 140 percent in 2020, and 130 percent recorded in 2019.
The solvency ratio of an insurance company is the size of its capital relative to all the risk it has taken, which is all liabilities subtracted from total assets.
In other words, solvency is a measurement of how much the company has in assets versus how much it owes. It helps investors measure the company’s ability to meet its obligations and is similar to the capital adequacy ratio of banks.
The underwriter was rated A(NG) in the latest ranking of insurance and financial products providers by the world-renowned rating agency, GCR, which applauded it for its “stable outlook”
The insurance company, in a statement, quoted GCR as saying, it puts the performance of the leading financial and insurance operators in the country on scale for its 2022 ranking, found LASACO worthy of commendation for its creativity and strict adherence to standards
The company came tops for its “strong financial strength and competitive position on improved financial profile” which cumulatively showed that its 2022 performance outlook was stable.
LASACO’s latest rating confirmed the relevance and appropriateness of the reform programmes which the company embarked on to keep it fit for the 21st Century corporate performance and customer-oriented business strategy.
The insurers underwriting profit spiked by 46.63 percent to N2.40 billion in September 2022 from N1.63 billion in September 2021.