Lasaco Assurance Retains A(NG) Rating as Revenue Rises 35.2% to N30.8bn

Lasaco Assurance Retains A(NG) Rating as Revenue Rises 35.2% to N30.8bn

Lasaco Assurance Plc has retained its A(NG) national-scale financial strength rating for the 2025/2026 rating period, following an affirmation by Global Credit Rating Co. (GCR), with a stable outlook, in a development that highlights the insurer’s capital position and ongoing growth strategy.

The rating affirmation reflects the company’s risk-adjusted capital base, adequate liquidity and efforts to strengthen its underwriting capacity amid competition and evolving demands in Nigeria’s insurance industry.

According to the company, its financial performance was supported by a significant capital injection in 2026, which strengthened its capacity to underwrite larger and higher-value risks. The additional capital is expected to support its expansion plans and improve its ability to manage the financial risks associated with its insurance operations.

Lasaco Assurance recorded a 35.2 per cent increase in insurance revenue to N30.8 billion in 2025, reflecting growth across its business lines. The performance underscores the company’s efforts to expand its business portfolio and deepen its presence in the Nigerian insurance market.

Despite the revenue growth, the insurer continues to face underwriting performance pressures, making improved risk selection, pricing discipline and cost management important to its drive for stronger profitability.

The company is pursuing a range of strategic initiatives aimed at expanding retail insurance penetration, accelerating digitalisation and strengthening partnerships to attract new customers and improve service delivery.

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These initiatives are also expected to support wider access to insurance products, improve operational efficiency and strengthen the company’s competitive position in a market where insurers are increasingly seeking innovative ways to reach individuals and businesses.

Lasaco Assurance’s diversified business portfolio remains a key component of its growth strategy, with several business lines contributing to its revenue. The company is also prioritising improved underwriting discipline and more effective use of reinsurance capacity to manage exposure to large claims and reduce earnings volatility.

Reinsurance enables insurers to transfer part of their risks to other insurance providers, helping them manage large exposures and preserve their financial capacity. For Lasaco Assurance, effective deployment of reinsurance arrangements is part of its broader effort to balance business expansion with risk management.

Commenting on the rating affirmation, the company’s Managing Director, Ademoye Shobo, expressed satisfaction with the recognition, describing it as a validation of the efforts and resilience of the company’s workforce.

“Lasaco Assurance is proud of this recognition, which validates the hard work and resilience of our team. Nonetheless, we remain fervently committed to continuous improvement and are actively working to elevate our rating through enhanced underwriting practices, operational excellence, and strategic growth,” Shobo said.

The company said its strengthened capital base and improved liquidity coverage had positioned it to pursue sustainable growth over the rating outlook period.

However, sustaining the positive momentum will depend on its ability to translate revenue growth into improved underwriting results, maintain adequate liquidity and manage risks effectively as its business expands.

The insurer’s emphasis on operational efficiency and disciplined underwriting reflects the need to balance growth with profitability, particularly in an industry where claims obligations, pricing pressures and changing market conditions can affect financial performance.

Lasaco Assurance also aims to increase its market share while delivering value to policyholders through improved products and service delivery. Its digitalisation strategy and retail market expansion are expected to play important roles in reaching more customers and strengthening its distribution channels.

The continued affirmation of its A(NG) rating provides a positive signal about the company’s financial strength within the national rating scale. However, the rating does not eliminate the operational and underwriting risks associated with its business.

As Lasaco Assurance advances its growth agenda, its ability to sustain revenue expansion, strengthen underwriting profitability and maintain sound capital and liquidity positions will remain important to its long-term performance and standing in Nigeria’s insurance sector.

Lasaco Assurance Retains A(NG) Rating as Revenue Rises 35.2% to N30.8bn