Lasaco Assurance cuts operating cash outflow to N416.82m

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Lasaco Assurance Plc reduced its net cash outflow from operating activities to N416.82m in the nine months ended 30 September, 2026, from N9.64bn recorded in the corresponding period of 2025.

The improvement came as the insurer’s payments for claims, reinsurance premiums and commissions declined, according to its unaudited financial statements for the period.

The company’s consolidated statement of cash flows showed that premium collections fell to N25.93bn from N29.04bn a year earlier, representing a decline of 10.7 per cent.

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

Commission payments also declined to N2.58bn from N5.51bn, helping to reduce the pressure on cash generated from the insurer’s operations.

However, acquisition and other claims expenses increased to N5.08bn from N3.46bn during the period.

Reinsurance claims and expenses received rose to N3.75bn from N3.30bn, while claims received from co-insurers declined sharply to N302.64m from N2.21bn.

Lasaco’s cash and cash equivalents increased to N33.76bn at the end of September 2026, up from N14.82bn at the beginning of the year.

The increase was largely supported by N18.10bn in proceeds from the issuance of shares, compared with N10.82bn recorded in the corresponding period of 2025.

The company recorded a net cash inflow of N1.39bn from investing activities, compared with N3.29bn in the previous year.

Interest income from investments contributed N2.33bn, while proceeds from the disposal of investment property amounted to N694m.

Lasaco also received N171.86m from the disposal of property, plant and equipment.

On the expenditure side, the insurer spent N668.82m on property, plant and equipment and N208.14m on fixed deposits and treasury bills.

Cash inflows from financing activities stood at N18.10bn, up from N10.82bn in the corresponding period of 2025, with the proceeds entirely attributed to the issuance of shares.

The company reported no dividend payments to equity holders during the period.

Despite the improvement in operating cash flow, the insurer’s premium collections remained below the previous year’s level, highlighting the importance of sustaining premium growth while managing claims and other operating expenses.

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