Lasaco Assurance Plc has maintained a positive solvency position that underpins its ability to pay claims to policyholders just as a reduction in expenses helped the insurer return to the path of profitability.
Lasaco Assurance is well capitalised with strong buffers against claims and gyrations in the capital market as the solvency margin ratio stood at 113 percent in the first nine months of 2026, though lower than 2025’s 252 percent, according to MoneyCentral calculations.
Simply put, the company’s available solvency margin of N28.26 billion (which is the excess of admissible total assets over total liabilities) exceeds the minimum capital required of N25 billion, resulting in a surplus solvency margin of N3.26 billion, based on MoneyCentral calculation.
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.
The insurer posted profit after tax (PAT) of N1.24 billion in September 2026 from a loss after tax of N4.81 billion as at September 2025 even amid a weak revenue growth.
It is important to note that the impressive performance at the bottom line (profit) was largely driven by a reduction in insurance expenses.
Insurance service expenses were down 22.80 percent to N15.44 billion in the period under review from N20 billion as at September 2025.
Analysts attribute receding insurance expenses to easing inflationary pressures and relative stability in the foreign exchange market that led to gradual dip in the replacement costs of assets.
Nigeria’s inflation rate fell more than expected in September as headline inflation slowed to 14.63 percent from 15.39 percent in August, the National Bureau of Statistics said on Thursday. That is 6.35 percentage points below the 20.98 percent recorded a year earlier.
But the insurer’s insurance revenue grew at a mere 3.70 percent to N23.80 billion as at September 2026 from N22.95 billion as at September 2025.
Lasaco Assurance Plc has officially met the new minimum capital requirements mandated by the National Insurance Commission (NAICOM) under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The company successfully closed its capital-raising hurdle ahead of the July 31, 2026 deadline. It secured N19.3 billion through an oversubscribed rights issue, outperforming its initial N18.47 billion target by 4.5 percent. This achievement represents the largest individual capital raise by a single insurance firm in Nigeria during the 2026 recapitalization cycle.
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