LASACO Assurance cuts Group losses 94.5% to ₦39m, eyes dividend return
LASACO Assurance Plc slashed its Group accumulated losses by 94.5% to ₦39.32 million as of September 30, 2026, down from ₦710.08 million at end-2025, according to Nairametrics Research analysis of unaudited nine-month results. The turnaround came on a ₦1.25 billion profit after tax for the period, reversing a ₦4.81 billion loss a year earlier, driven by insurance revenue growth (3.7% to ₦23.81 billion) and a 22.8% drop in insurance service expenses to ₦15.45 billion.
However, the parent company—whose distributable profits determine dividend capacity—still carries a ₦559.55 million accumulated deficit, down roughly 51% from ₦1.14 billion. The Group also transferred ₦573.08 million to statutory contingency reserves during the period, which reduced retained earnings available for distribution. LASACO last paid a dividend in July 2023 (15 kobo per share) and skipped payouts for the 2023-2025 financial years.
Separately, the insurer raised ₦18.10 billion via share issuance earlier in 2026, lifting shareholders’ funds to ₦39.71 billion from ₦20.36 billion and cash to ₦33.76 billion. But share capital doesn’t create distributable earnings. Any dividend return hinges on sustained parent-company profitability, sufficient distributable reserves, and regulatory approvals.
Will LASACO rebuild its parent retained earnings fast enough to resume dividends, or will statutory reserve requirements and capital adequacy rules keep shareholders waiting?