Lasaco cuts operating cash outflow to N417m

By Chibuzor Alli

Lasaco Assurance Plc has narrowed its net cash outflow from operating activities to N416.82m in the first nine months of 2026, from N9.64bn a year earlier, as payments for claims, reinsurance premiums and commissions declined.

The insurer’s unaudited financial statements for the nine months ended 30 September 2026 showed that the improvement occurred despite a drop in premium collections, pointing to the importance of controlling operating costs while sustaining revenue growth.

Premium collections fell by 10.7 per cent to N25.93bn from N29.04bn in the corresponding period of 2025.

However, reinsurance premiums paid declined to N7.67bn from N10.56bn, while claims paid and other expenses dropped to N9.93bn from N18.58bn.

Commission payments also fell by more than half, from N5.51bn to N2.58bn, reducing the cash required to meet key operating obligations.

Not all expense items followed the downward trend. Acquisition and other claims expenses increased to N5.08bn from N3.46bn during the period.

The insurer also recorded mixed movements in recoveries. Reinsurance claims and expenses received rose to N3.75bn from N3.30bn, while claims received from co-insurers plunged to N302.64m from N2.21bn.

Beyond its operating activities, Lasaco’s cash position strengthened considerably during the period, with cash and cash equivalents rising to N33.76bn at the end of September from N14.82bn at the beginning of the year.

The increase was supported largely by fresh equity capital. Proceeds from the issuance of shares amounted to N18.10bn, compared with N10.82bn in the corresponding period of 2025.

The proceeds accounted for the insurer’s cash inflow from financing activities, as the company reported no dividend payments to equity holders during the nine-month period.

Lasaco also generated a net cash inflow of N1.39bn from investing activities, down from N3.29bn a year earlier.

Investment interest income contributed N2.33bn, while the disposal of investment property generated N694m. The company received a further N171.86m from the disposal of property, plant and equipment.

These inflows were partly offset by expenditure of N668.82m on property, plant and equipment and N208.14m on fixed deposits and treasury bills.

Although the reduction in operating cash outflow marks a substantial improvement from the previous year, the decline in premium collections remains a key consideration for the insurer as it seeks to strengthen its underlying business performance.