Lasaco Assurance Plc has made moves to shore up its balance sheet, securing shareholders’ approval to raise its capital base to N36 billion, well above the new regulatory minimum for composite insurers in the country.

The decision positions the underwriter among operators opting to act early as the Nigerian insurance market adjusts to higher capital thresholds introduced under the Nigerian Insurance Industry Reform Act 2025.

At an Extraordinary General Meeting (EGM) held in Lagos, shareholders endorsed a comprehensive recapitalisation plan that would lift the company comfortably above the N25 billion minimum capital requirement for composite insurance firms.

Under the industry exercise, life insurers are required to recapitalise to N10 billion, general insurers to N15 billion, while composite underwriters should have capital of at least N25 billion.

By targeting N36 billion, LASACO signals its intention not just to comply, but to exceed the benchmark to compete more strongly in a post-recapitalisation landscape.

Addressing shareholders, the Chairman of the firm, Teju Philips, said the recapitalisation drive is in direct response to the new regulatory regime, which seeks to strengthen insurance operators and enhance their ability to underwrite larger and more complex risks.

She noted that capital remained a critical determinant of underwriting capacity, stressing that the new thresholds would enable stronger players to expand their market footprints and deepen confidence in the sector.

“The reforms are designed to produce stronger institutions that can take on more business and meet obligations as and when due,” she said, adding that LASACO has consistently demonstrated its commitment to claims settlement and transparent operations.

Central to the resolutions passed at the meeting was a proposal to increase the company’s issued share capital from 11,083,585 units to 36,083,585 units. This is to be achieved through a combination of private placement and rights issue.

Shareholders also approved that the new share would rank pari passu with existing ordinary shares.

In line with the capital raise, the company’s authorised share capital will be adjusted to reflect the new N36 billion threshold, while the memorandum and articles of association will be amended accordingly.

The EGM authorised the board of directors to finalise the terms of the capital raising exercise, secure all required regulatory approvals and appoint professional advisers.

The company secretary was also mandated to complete all statutory filings with the Corporate Affairs Commission (CAC).