LASACO Assurance Plc has successfully crossed the recapitalisation hurdle after raising N19.3 billion through a rights issue, exceeding its initial target of N18.47 billion by 4.5 per cent.

The successful capital raising, which attracted strong participation from existing shareholders, comes as operators across the industry race to comply with the new regulatory capital requirements aimed at creating stronger and more resilient insurance companies.

The company said the rights issue has received the necessary regulatory validations, marking another significant step in its recapitalisation journey.

According to the insurer, the National Insurance Commission (NAICOM) carried out a comprehensive verification of the source of funds raised through the offer and subsequently issued a confirmation to the Securities and Exchange Commission (SEC), affirming the credibility and admissibility of the capital.

Following the verification, the SEC granted its final approval for the rights issue, paving the way for the successful completion of another critical phase of the company’s recapitalisation exercise.

Lasaco disclosed that an independent consultant appointed for the exercise conducted an extensive review of the company’s shareholders’ funds, assets and liabilities, reaffirming its admissible capital position, with the newly-raised capital expected to further strengthen its financial base upon final incorporation into its capital computation.

Managing Director/Chief Executive Officer, Lasaco Assurance, Ademoye Shobo, described the successful rights issue as a reflection of shareholders’ confidence in the company’s strategic direction and long-term growth prospects.