Lasaco Assurance has reported a net profit of N384.9 million for the half-year ended June 2026, swinging from a N731.5 million loss in the same period last year, according to its latest corporate report published Friday. The turnaround was driven primarily by aggressive cost-cutting rather than top-line growth.
Revenue Decline Offset by Expense Reductions
Insurance revenue, the company's core income source, fell 3.2% to N16.3 billion from N16.8 billion in H1 2025, driven by a slide in cash from its general business insurance contracts. However, Lasaco slashed insurance service expenses by 17% and reduced net expenses from reinsurance contracts by 11.4%, pushing insurance service results to N3.1 billion from N1.1 billion a year earlier.
Investment results dropped 13.4% to N1.6 billion, hurt by lower interest income from fixed deposits and bonds calculated using the effective interest method. The company also recorded a net foreign exchange loss of N67.9 million, compared with a N58.1 million gain in H1 2025, further weighing on net investment results.
Other Income Plunges, Operating Costs Rise
Other operating income slumped to N33.3 million from N246.1 million in the prior year. Operating expenses increased 9.2% to N4.2 billion from N3.8 billion. Despite these headwinds, profit before tax stood at N436.2 million, compared with a pre-tax profit of N518.1 million a year ago. The post-tax profit of N384.9 million marks a significant recovery from the net loss of N731.5 million in H1 2025.
Recapitalisation Deadline Looms
The results come as Nigeria's insurance industry faces a recapitalisation deadline this month. Composite insurers like Lasaco must increase minimum paid-up capital from N5 billion to N25 billion. Lasaco raised N19.3 billion through a recently concluded rights issue, which has passed capital verification with the National Insurance Commission and received confirmation of admissibility from the Securities and Exchange Commission.
Market Context
The NGX Insurance Index has risen 23.8% since President Bola Tinubu signed the Nigerian Insurance Industry Reform Act on 4th August 2025, reflecting investor optimism in the sector's transformation.
