By David Akinmola
With Nigeria’s insurance recapitalisation exercise entering its final phase, LASACO Assurance Plc has raised a record ₦19.3 billion through a rights issue, underscoring the growing scramble by underwriters to strengthen their capital base as the industry positions for a new era of consolidation, stronger underwriting capacity and increased competition under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The successful capital rising, which exceeded the company’s initial target of ₦18.47 billion by about 4.5 per cent, comes as insurers reposition for a post-recapitalisation era expected to be driven by stronger balance sheets, improved underwriting capacity, enhanced risk retention and increased competition across Africa.
The development also reinforces the growing confidence of investors in insurance stocks despite the sweeping reforms that have transformed the sector over the past one year.
Industry analysts said the successful exercise highlights investors’ willingness to support insurers with credible growth strategies and strong corporate governance, even as the recapitalisation programme compels operators to strengthen their financial positions to underwrite larger and more sophisticated risks.
Managing Director/Chief Executive Officer of Lasaco Assurance Plc, Ademoye Shobo, described the successful capital raise as a significant milestone in the company’s transformation journey and a clear endorsement of its long-term strategy by shareholders and investors.
According to him, the overwhelming response to the rights issue demonstrates the confidence of the investment community in the company’s governance standards, financial fundamentals and future growth prospects.
He said: “This successful capital raise represents far more than regulatory compliance. It reflects the confidence our shareholders have in our vision and reinforces our commitment to building a stronger, more resilient and more competitive insurance company. We are grateful for the trust reposed in us and remain committed to delivering sustainable value to all stakeholders.”
Shobo noted that the fresh capital would be deployed to strengthen the company’s underwriting capacity, accelerate digital transformation, expand product offerings, improve customer experience and position the insurer for sustained growth in Nigeria’s evolving insurance market.
He added that the stronger capital base would enable Lasaco to retain more high-value risks locally, improve operational efficiency and enhance claims-paying ability while supporting the company’s long-term expansion strategy.
The company stated that the recapitalisation exercise also passed critical regulatory and verification stages, with the National Insurance Commission (NAICOM) confirming the admissibility of the funds raised after verifying the source of capital.
Following the verification process, the Securities and Exchange Commission (SEC) granted final approval for the rights issue, while an independent consultant also validated the company’s shareholders’ funds, assets and liabilities as part of the recapitalisation exercise.
Industry stakeholders believe stronger capitalisation will enable insurance companies to invest more aggressively in technology, product innovation, artificial intelligence, cyber security and digital distribution channels as competition intensifies in the post-recapitalisation landscape.
They also argued that better-capitalised insurers would be better positioned to support major infrastructure projects, oil and gas, aviation, marine and manufacturing businesses that previously relied heavily on offshore insurance capacity.
The recapitalisation exercise, introduced under the NIIRA 2025, is expected to produce fewer but financially stronger insurance institutions capable of supporting Nigeria’s economic development while improving policyholder protection and restoring public confidence in the industry.
Analysts further observed that companies with stronger balance sheets are likely to enjoy improved investor confidence, enhanced creditworthiness and greater capacity to attract strategic partnerships and foreign investment.
They added that beyond meeting regulatory thresholds, the real test for operators would be how effectively they deploy the fresh capital to deepen insurance penetration, improve claims settlement, expand financial inclusion and deliver superior returns to shareholders.
With the successful completion of its record capital raise, Lasaco Assurance joins the growing list of insurers that have strengthened their capital base ahead of the industry’s new operating regime, positioning itself to compete more effectively in what stakeholders describe as a new era for Nigeria’s insurance sector.
