Lasaco Assurance Turns Tide on Half-Year Loss, Records Profit of N384.9 million

‘We are excited to report a significant improvement in our financial performance in the first six months of this year, thanks to the hard work of our team and our commitment to operational excellence,' Lasaco Assurance said in a statement.

Lasaco Assurance, a composite insurance underwriter, has finally put its struggles behind it after recording a profit of N384.9 million in the first six months of 2026.

The insurer, which suffered a half-year loss of N731.5 million last year, achieved this feat through cost-cutting measures that helped reduce its expenses by billions of naira.

According to the company's latest corporate report, insurance service expenses were cut by 17%, while net expenses from reinsurance contracts dropped by 11.4%.

These cost-cutting measures contributed significantly to the company's insurance service results, which rose to N3.1 billion in the first six months of this year, up from N1.1 billion in the same period last year.

However, the company's investment result was less impressive, dropping 13.4% to N1.6 billion due to a decline in interest revenue calculated using the effective interest method.

Lasaco Assurance incurred a net foreign exchange loss of N67.9 million, compared with the N58.1 million gain recorded in the same period last year, which also affected the company's net investment results.

The company's profit before tax stood at N436.2 million, compared with a pre-tax profit of N518.1 million in the same period last year.

Nigeria's insurance industry is currently undergoing a recapitalisation exercise, which requires life insurance businesses to scale up their minimum paid-up capital from N2 billion to N10 billion and non-life insurers from N3 billion to N15 billion.

In a separate development, Lasaco Assurance recently concluded a rights issue that raised N19.3 billion for the company.

The NGX Insurance Index, which tracks the performance of Nigeria's most capitalised and liquid insurance stocks, has been up by 23.8% since President Bola Tinubu signed the Nigerian Insurance Industry Reform Act in August 2025.

Lasaco Assurance's return to profitability is a significant milestone for the company, which is currently finalising its recapitalisation plans to meet the industry's new capital requirements.

The company's recent rights issue has provided it with the necessary capital to meet the new capital requirements, and its profit margin has improved significantly as a result of its cost-cutting measures.

Lasaco Assurance's profit margin has improved significantly since the company's recapitalisation exercise, and its recent rights issue has provided it with the necessary capital to meet the industry's new capital requirements.

The company's profit margin is expected to continue improving in the coming months as it finalises its recapitalisation plans and meets the new capital requirements.