Insurer to raise N11.1 billion capital through private placement

In a move ahead of the proposed insurance industry recapitalisation exercise, Lasaco Assurance Plc has revealed plans to raise N11.1 billion in fresh capital through a private placement of 9.25 billion ordinary shares of 50k each at 1.20k per share.

The underwriting firm said the capital raising exercise will strengthen the organisation’s financial position within the insurance industry. The Chairman of the firm, Olateju Phillips, expressed confidence about the firm’s future and stressed the importance of aligning the company’s strategies with dynamic market conditions to maintain a strong market presence.

The chairman said that the meeting marked a significant milestone in reaffirming long-term goals, with a clear focus on fostering sustainable growth and providing exceptional value to clients and stakeholders.

Also speaking on the development in the company, the Managing Director, Razzaq Abiodun, expressed that the capital raised will enhance Lasaco Assurance’s market share, strengthen its competitive edge, and sustain the company’s enduring legacy.

The funds have been carefully allocated to critical areas, ensuring maximum impact and supporting sustained growth. This move, he noted, is to position the company for greater success and reaffirm its readiness for future opportunities.

He stressed that the additional capital will strategically position the company for future recapitalisation processes as Lasaco Assurance Plc is poised to ever remain not just competitive but also compliant and financially stable.

In the same vein, an Independent Director, Sani Ndanusa, underlined the company’s potential to achieve its targets within the set time frame despite the challenging business environment.

He stated that all parties involved, including the Nigerian Exchange Group (NGX), SEC, NAICOM, and stakeholders should work in the best interest of the company and its shareholders.

Non-Executive Director, Saliu Adeniyi, remarked that the additional capital raise will enable the company to compete more aggressively, specifically in the oil and gas sector. He stated that raising additional capital was driven by the desire to grow the business and not regulatory pressures.