Lasaco Assurance Secures N11.1bn in Capital Boost Through Private Placement

Samuel Mobolaji

Lasaco Assurance Plc is set to raise N11.1 billion fresh capital through a private placement of 9.25 billion ordinary shares of 50k each at 1.20k per share, in a proactive move ahead of the proposed insurance industry recapitalisation exercise.

The official signing ceremony was performed by Lasaco Assurance Plc’s board of directors, management team, professional partners, and financial advisors in Ikeja, Lagos recently.

This capital raising exercise is expected to strengthen Lasaco Assurance Plc’s financial position within Nigeria’s insurance industry.

Its chairman, Mrs. Olateju Phillips, expressed optimism about Lasaco Assurance Plc’s future, emphasising the importance of aligning the company’s strategies with dynamic market conditions to maintain a strong market presence.

The meeting marked a significant milestone in reaffirming long-term goals, with a clear focus on fostering sustainable growth and providing exceptional value to clients and stakeholders.

The managing director, Mr. Razzaq Abiodun, expressed enthusiasm about this significant achievement, emphasising its strategic importance for the organisation. He highlighted that the capital raised will enhance Lasaco Assurance’s market share, strengthen its competitive edge, and sustain the company’s enduring legacy.

Stating that the funds have been carefully allocated to critical areas, ensuring maximum impact and supporting sustained growth, he added that, this move is to position the company for greater success and reaffirm its readiness for future opportunities.

He further emphasised that the additional capital will strategically position the company for future recapitalisation process as Lasaco Assurance Plc is poised to ever remain not just competitive but also compliant and financially stable.

An independent director of the company, Engineer Sani Ndanusa, highlighted the company’s potential to achieve its targets within the set timeframe despite the challenging business environment, stating that, all parties involved, including the Nigerian Exchange Group (NGX), Securities and Exchange Commission (SEC), the National Insurance Commission (NAICOM) and other stakeholders should work in the best interest of the company and its shareholders.

Non-Executive director, Mr Saliu Adeniyi, remarked that the additional capital raise will enable the company to compete more aggressively, specifically in oil and gas sector.

With the capitalisation boost, Lasaco Assurance Plc is ready to pursue diverse business opportunities and maintain its enviable position within the insurance market, he said, emphasising that, raising additional capital was driven by the desire to grow the business, not regulatory pressures, highlighting the company’s proactive approach to growth.

The Completion Board Meeting also reviewed Lasaco Assurance Plc’s recent accomplishments and discussed upcoming projects to ensure they align with the company’s long-term vision. Discussions covered market expansions, new product development, and innovations designed to solidify the company’s position in the Nigerian insurance sector.

The board and executive management said, they are committed to driving the company toward sustained success by focusing on innovation, improving service delivery, and expanding its market share.

With the completion of recapitalisation exercise, the board and management said they remains dedicated to pursuing future-oriented strategies to meet the evolving needs of its clients. With the newly raised capital and a solid three-year plan in place, Lasaco Assurance Plc is poised to lead the industry into its next growth phase, delivering exceptional value to clients, partners, and shareholders.