Lasaco Assurance has reported a significant downturn in its financial performance, shifting into a loss-making position for the 2025 financial year. According to the company’s unaudited earnings report released on February 3, 2026, the insurer recorded a post-tax loss of ₦3.1 billion, a sharp reversal from the ₦1.5 billion profit it achieved just one year prior.
The primary driver of this decline was the total disappearance of foreign exchange (FX) gains. In 2024, a volatile exchange rate allowed the firm to earn ₦3.2 billion in currency-related profits, but the relative stability of the Naira in 2025 removed this financial buffer, exposing the company’s underlying operational struggles.
Despite the overall loss, Lasaco saw a 31.4 percent increase in its total insurance revenue, which climbed to ₦30 billion. However, this growth in volume did not translate into profitability due to high service costs. The “insurance service result”, a key metric that measures how much profit is made from actual insurance activities after paying all claims and expenses—remained negative for the second year in a row.
This figure worsened from a negative ₦1.2 billion in 2024 to a negative ₦2.1 billion in 2025, indicating that the core business of selling policies and managing risks is currently costing the company more than it earns.
A comparative analysis of the industry shows that Lasaco is currently trailing its peers in cost efficiency. In 2025, the company’s insurance service expenses accounted for 84.2 percent of its revenue. In contrast, competitors like Cornerstone Insurance maintained a much lower expense ratio of 47.1 percent, while AIICO and Mutual Benefits recorded ratios of 68.7 percent and 76.4 percent, respectively.
While these competitors have managed to keep their underwriting costs low and their service results positive, Lasaco has struggled to optimize its internal processes and claim management systems.
Investment performance offered a small silver lining, with investment results rising by 18 percent to ₦6.2 billion, aided by higher interest rates on the company’s holdings. However, this was insufficient to cover the losses generated by the insurance segment.
Furthermore, the net investment result actually declined by 28.9 percent, reaching ₦8.5 billion, as the company navigated a shifting financial landscape without the benefit of the previous year’s massive currency spikes.
The company is now in a high-stakes race to meet the requirements of the Nigerian Insurance Industry Reform Act 2025. Under this new law, Lasaco—which holds a composite insurance license—must increase its minimum capital from ₦11.1 billion to ₦25 billion by August 2026. This mandate is part of a broader industry push by the government to build underwriters capable of handling larger risks.
To reach this goal, Lasaco’s board approved a plan in December to raise new funds through private placements (selling shares to specific investors) and a rights issue (offering new shares to existing shareholders). The firm expects these efforts to eventually push its total share capital to ₦36.1 billion.
