Lasaco pays N18.58bn claims as revenue rises 35% to N30.86bn

Lasaco Assurance Plc paid N18.58 billion in claims in 2025, up 129.9 per cent from the N8.08 billion recorded in 2024, as the insurer’s premium income expanded but rising claims and reinsurance costs pushed its insurance business further into the red.

The figures were disclosed in the company’s 2025 financial report presented by its Chairman, Babatunde Dabiri, at Lasaco’s 46th Annual General Meeting held virtually on Thursday.

Insurance revenue increased by about 35 per cent to N30.86 billion in 2025, from N22.82 billion a year earlier, showing stronger business volumes during the period.

However, the faster increase in claims payments placed greater pressure on underwriting performance. The company’s audited accounts showed insurance service expenses rising to about N26.75 billion, while net expenses from reinsurance contracts more than doubled to N6.78 billion from N3.23 billion.

Consequently, Lasaco recorded a negative insurance service result of about N2.67 billion, compared with a negative N1.21 billion in 2024.

The pressure was reflected in the company’s bottom line. Profit before tax declined from N1.94 billion in 2024 to a loss of N2.61 billion in 2025, despite the significant increase in insurance revenue.

Investment returns also provided less support to earnings, with net investment results falling to about N6.46 billion from N8.74 billion in the preceding year.

The performance highlights the challenge facing insurers as they seek to grow premium income while managing claims, reinsurance and other costs. For investors, the sharp increase in revenue is therefore being weighed against the deterioration in underwriting profitability.

Lasaco’s balance sheet, however, strengthened during the year. Total assets increased to approximately N39.63 billion, while shareholders’ funds rose to about N20.41 billion, from N12.26 billion in 2024.

The stronger capital position could provide additional capacity for business expansion and the absorption of unexpected losses, although the return generated on that capital remains a key consideration for shareholders.

The increase in claims payments also underscores the insurer’s role in meeting its obligations to policyholders. Claims settlement remains a critical measure of confidence in the insurance industry, particularly as insurers seek to deepen market penetration and improve public trust.

Lasaco’s performance in the first quarter of 2026 provided some signs of recovery, with insurance revenue rising to about N9.33 billion and profit before tax reaching N3.36 billion, compared with N1.62 billion in the corresponding period of 2025.

The company’s total assets also increased to about N46.20 billion by March 2026.

For Lasaco, the immediate challenge is now to sustain premium growth while controlling claims and reinsurance costs sufficiently to restore consistent underwriting profitability.

The 2025 results therefore present a mixed picture: insurance revenue rose sharply, claims payments more than doubled and the balance sheet strengthened, but the company swung into a pre-tax loss as the cost of carrying the additional insurance business increased faster than earnings.