Lasaco Assurance Plc has unveiled plans to shore up its financial strength with a proposed N18.47 billion rights issue, a move aimed at reinforcing its capital base and positioning the insurer for sustained growth in an increasingly competitive market.
The announcement was made at a signing ceremony held over the weekend at the company’s headquarters in Lagos, where management outlined details of the capital-raising exercise and its strategic importance to the business.
The initiative comes after securing the necessary regulatory clearances from the Nigerian Exchange Group and the Securities and Exchange Commission, paving the way for the insurer to proceed with its expansion plans.
Speaking at the event, Ademoye Shobo, managing director of Lasaco Assurance, noted that shareholders had earlier endorsed the proposal at an Extraordinary General Meeting, reflecting investor confidence in the company’s long-term direction.
Under the terms of the offer, Lasaco plans to issue 9.24 billion ordinary shares priced at N2.00 per share. The rights issue is structured on the basis of five new shares for every six shares currently held by existing shareholders. Eligibility for participation is tied to investors on the company’s register as of the close of business on February 20, 2026.
Shobo disclosed that the subscription window will open on April 2 and close on April 24, 2026, adding that the rights will be tradable on the floor of the Nigerian Exchange throughout the offer period, providing flexibility for shareholders.
He explained that the proceeds from the exercise are expected to significantly improve the company’s underwriting capacity, while also supporting broader expansion ambitions across key segments of the insurance market.
The capital raise is part of a larger funding strategy earlier approved by shareholders, which combines a rights issue with a private placement. At the Extraordinary General Meeting held virtually on December 9, 2025, investors also approved an increase in the company’s minimum share capital from N11.08 billion to N36.08 billion, representing an additional N25 billion injection into the business.
Management believes the fresh capital will not only strengthen Lasaco’s balance sheet but also enhance its ability to compete more effectively within the industry, particularly in underwriting larger and more complex risks.
Financial advisory roles on the transaction are being handled by Meristem Capital Limited as lead issuing house, alongside PAC Capital, which is acting as joint issuing house.
Shobo emphasised that the capital-raising effort aligns with broader industry trends, as insurers across Nigeria continue to bolster their financial positions in response to evolving regulatory expectations and market dynamics. According to him, stronger capital buffers are essential for operators seeking to deepen their participation in high-value transactions and deliver improved service to policyholders.
He reiterated the company’s commitment to maintaining a solid capital base, noting that this remains critical to fulfilling its obligations to customers and sustaining long-term growth.
The move comes at a time when Nigeria’s insurance sector is undergoing a renewed phase of recapitalisation, driven by the need for greater resilience and competitiveness. Industry players are increasingly looking to strengthen their capital structures to support product innovation, expand coverage, and address emerging risks across various sectors of the economy.
