LASACO Assurance Plc has returned to profitability, recording a group profit before tax of ₦1.60 billion for the nine months ended September 30, 2026, compared with a loss before tax of ₦4.72 billion in the corresponding period of 2025.
The turnaround represents a year-on-year improvement of ₦6.32 billion, driven mainly by lower insurance service expenses and reduced reinsurance costs, according to the company’s unaudited financial statements filed with the Nigerian Exchange (NGX) on October 19, 2026.
Nairametrics reported on Wednesday, October 21, 2026, that the insurer’s improved underwriting performance was the primary driver of the recovery, as insurance revenue grew modestly while expenses declined significantly.
LASACO’s insurance revenue rose by 3.71% to ₦23.81 billion from ₦22.96 billion in the corresponding period of 2025. However, insurance service expenses fell by 22.79% to ₦15.45 billion from ₦20.01 billion.
Net expenses from reinsurance contracts held also declined by 53.29% to ₦2.52 billion from ₦5.38 billion, helping the company’s insurance service result swing to a profit of ₦5.84 billion from a loss of ₦2.44 billion a year earlier.
The stronger performance in its core insurance operations helped offset weaker investment results and rising operating costs.
Net investment results fell by 8.87% to ₦2.47 billion from ₦2.72 billion, while running costs increased by 13.02% to ₦6.30 billion. Other operating income also dropped sharply to ₦32.83 million from ₦812.74 million.
Despite these pressures, LASACO reported a profit after tax of ₦1.25 billion, reversing a loss after tax of ₦4.81 billion in the same period of 2025.
The company’s balance sheet also strengthened following a ₦18.10 billion rights issue, which provided additional capital to support its operations.
According to the financial statements, total assets increased by 56.03% to ₦61.23 billion as of September 30, 2026, from ₦39.24 billion at December 31, 2025.
Shareholders’ funds rose to ₦39.71 billion from ₦20.36 billion over the same period, an increase of approximately 95.0%, reflecting the impact of the fresh capital raised.
However, the insurer’s cash flow statement showed that operating activities used ₦416.82 million in cash during the nine-month period, indicating that the return to accounting profitability had yet to translate into positive operating cash flow.
The results point to a recovery led largely by improved cost management in LASACO’s insurance operations rather than substantial revenue growth. Sustaining the turnaround will depend on maintaining underwriting gains, controlling operating expenses and improving cash generation as the company deploys its additional capital.
