Shareholders of Lasaco Assurance Plc (NGX:LASACO) have approved a NGN25bn ($17.25mn) capital raising plan aimed at strengthening the insurer’s financial position and improving its ability to compete in Nigeria’s insurance market.
The approval was issued at the company’s annual general meeting, where management said the additional capital would support stronger solvency, expand underwriting capacity and create room for growth across key business lines.
Lasaco is a Nigerian insurer offering life, general and specialist risk products to corporate and retail clients. The company has been pursuing a strategy focused on digital distribution, operational efficiency and deeper penetration of under-served consumer segments.
In its most recent financial disclosures, the insurer reported growth in gross written premiums and improvements in investment income, although inflation and rising operating expenses continue to pressure margins. Management has said a larger capital base is needed to support bigger-ticket risks and accelerate product development.
The capital-raising plan aligns with wider sector reforms. The National Insurance Commission (NAICOM) has encouraged firms to strengthen their capital buffers ahead of long-discussed recapitalisation rules intended to deepen industry resilience and improve claims-paying capacity.
Nigeria’s insurance sector remains fragmented, with dozens of players competing in life and general business. Inflation, FX volatility and higher reinsurance costs have intensified the need for insurers to scale capital and invest in technology to maintain competitiveness.
The programme also fits into broader fundraising trends on the Nigerian Exchange. Financial services companies have increasingly turned to rights issues, private placements and hybrid instruments to navigate tighter liquidity conditions and meet regulatory requirements. Higher interest rates have boosted insurers’ investment income but also raised the cost of capital and pressured valuation metrics for capital-market issuances.
Lasaco’s directors said the fresh capital would position the company to take advantage of opportunities in oil and gas underwriting, infrastructure financing, micro-insurance and retail products, while strengthening long-term balance-sheet quality.
The capital raise will be executed through equity issuance and other approved instruments, subject to approval from the Securities and Exchange Commission and the Nigerian Exchange.
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