LAGOS, Nigeria — LASACO Assurance Plc has returned to profit, reporting group pre-tax earnings of ₦1.60 billion for the nine months ended September 30, 2026, against a ₦4.72 billion loss in the same period of 2025.
The unaudited consolidated financial statements show the recovery was driven mainly by lower insurance service expenses and net reinsurance costs, while insurance revenue grew modestly.
LASACO Assurance profit driven by lower insurance costs
The changes lifted the insurance service result to a ₦5.84 billion profit from a ₦2.44 billion loss a year earlier. That gain offset weaker investment income and higher running costs.
- Insurance revenue: ₦23.81 billion, up 3.71% from ₦22.96 billion
- Insurance service expenses: ₦15.45 billion, down about 22.79% from ₦20.01 billion
- Net expenses from reinsurance contracts held: ₦2.52 billion, down 53.29% from ₦5.38 billion
- Insurance service result: ₦5.84 billion profit, against a ₦2.44 billion loss
- Net investment result: ₦2.47 billion, down 8.87% from ₦2.72 billion
- Profit before tax: ₦1.60 billion, against a ₦4.72 billion loss before tax
Kanyi Daily reports that the return to profit came mainly from lower costs in the insurance business rather than a sharp rise in revenue.
Investment income and running costs weigh on earnings
Some of the insurance gain was absorbed elsewhere. Interest income fell to ₦2.33 billion from ₦2.58 billion, and dividends received dropped to ₦73.02 million from ₦96.71 million. Running costs rose 13.02% to ₦6.30 billion, and other operating income fell to ₦32.83 million from ₦812.74 million.
After tax, the group earned ₦1.25 billion, compared with a ₦4.81 billion loss a year earlier.
LASACO rights issue strengthens the balance sheet
The balance sheet expanded after the company’s rights issue. Total assets rose 56.03% to ₦61.23 billion from ₦39.24 billion at December 2025. Shareholders’ funds almost doubled, up 95.02% to ₦39.71 billion, while liabilities rose 13.99% to ₦21.52 billion.
Most of the rise in shareholders’ funds came from ₦18.10 billion raised by issuing shares. Cash and cash equivalents reached ₦33.76 billion, up from ₦14.82 billion at December, and the company held ₦2.54 billion in statutory deposits, which are restricted.
Operating cash flow remains negative
Despite the profit, operations used cash. LASACO received ₦25.93 billion in premiums during the nine months, paid ₦7.67 billion in reinsurance premiums and ₦9.93 billion in claims and other expenses. After commissions, staff costs and other payments, operating activities used ₦416.82 million.
The ₦18.10 billion raised from shareholders was therefore central to the stronger cash position.
LASACO share price and the test ahead
The LASACO Assurance share price closed at ₦1.90 on Tuesday, October 20, down from ₦2.45 at the start of the year, a fall of about 22.5%.
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 operations as it puts the new capital to work.
