By Emmanuella Opara | October 26th 2026
KEY POINTS
- Lasaco Assurance reduced net operating cash outflow to N416.82m in the nine months ended September 30, 2026, from N9.64bn a year earlier.
- Premium collections fell by 10.7 per cent to N25.93bn.
- Claims paid and other expenses declined to N9.93bn from N18.58bn.
- Cash and cash equivalents rose to N33.76bn, supported by proceeds from a share issuance.
- The insurer recorded N18.10bn in financing cash inflows and paid no dividends during the period.
MAIN STORY
Lasaco Assurance Plc reduced its net cash outflow from operating activities to N416.82m in the nine months ended September 30, 2026, from N9.64bn in the corresponding period of 2025, as payments for claims, reinsurance premiums and commissions declined.
The improvement was recorded despite a drop in premium collections, which fell by 10.7 per cent to N25.93bn from N29.04bn a year earlier, according to the insurer’s unaudited financial statements.
Claims paid and other expenses decreased to N9.93bn from N18.58bn, while reinsurance premiums paid fell to N7.67bn from N10.56bn.
Commission payments also declined to N2.58bn from N5.51bn, reducing the cash required to meet the company’s operating obligations.
However, acquisition and other claims expenses rose to N5.08bn from N3.46bn during the review period.
Reinsurance claims and expenses received increased to N3.75bn from N3.30bn, while claims received from co-insurers dropped to N302.64m from N2.21bn.
The insurer’s cash and cash equivalents rose to N33.76bn at the end of September 2026, compared with N14.82bn at the beginning of the year.
The increase was supported by N18.10bn in proceeds from the issuance of shares, recorded under financing activities. The amount was higher than the N10.82bn reported in the corresponding period of 2025.
Lasaco recorded a net cash inflow of N1.39bn from investing activities, compared with N3.29bn in the previous year.
Interest income from investments contributed N2.33bn, while the disposal of investment property generated N694m. The company also received N171.86m from the disposal of property, plant and equipment.
On investment-related expenditure, the insurer spent N668.82m on property, plant and equipment and N208.14m on fixed deposits and treasury bills.
Financing cash inflows stood at N18.10bn, entirely attributable to the issuance of shares. The company reported no dividend payments to equity holders during the period.
Despite the substantial reduction in operating cash outflow and the increase in cash balances, the decline in premium collections remains an important consideration for the insurer as it seeks to sustain revenue generation while managing claims and other expenses.
THE ISSUES
The reduction in Lasaco Assurance’s operating cash outflow points to a substantial improvement in its cash flow position. However, lower claims payments and other operating expenses do not, on their own, establish that the insurer’s underlying profitability has improved.
The 10.7 per cent decline in premium collections also indicates that the company collected less in premiums than it did during the comparable period of 2025.
Furthermore, the increase in cash and cash equivalents was supported significantly by new share proceeds. This means the higher cash balance should be considered alongside the company’s operating performance and its ability to generate sustainable cash inflows.
WHAT’S NEXT
The insurer’s subsequent financial results will provide further evidence of whether it can sustain its improved operating cash flow, strengthen premium collections and manage claims and acquisition expenses.
Investors will also be watching how the company deploys the proceeds from its share issuance and whether its operating activities can contribute more consistently to cash generation.
BOTTOM LINE
Lasaco Assurance sharply reduced its operating cash outflow in the first nine months of 2026 and increased its cash balance, supported by proceeds from a share issuance. However, declining premium collections mean the sustainability of the improvement will depend partly on the company’s ability to strengthen its core insurance business.
