LASACO Assurance Plc has expressed confidence in its ability to cross the recapitalisation huddle, saying it has perfected plans to upgrade its capital from present level of N4.6 billion to N18 billion.
Also, the underwriting firm said it has confidence in its shareholders’ ability and willingness to raise N13.4 billion that would be added to its existing N4.6 billion to meet the N18 billion mark as stipulated by the regulator, the National Insurance Commission(NAICOM).
LASACO Assurance Managing Director, Mr Segun Balogun, said this at a recent press briefing to announce the 40th anniversary of the company in Lagos, adding that the insurer has 18 billion shares to issue.
He said the company would first approach its top 10 shareholders through private placement then would take the rest to public.
According to him, the shareholders were already waiting for the company to come to the public and have given their assurance of bringing money into the company.
He said in addition to this, the company’s board and management, have put up a clear contingency plan that would enable the company stand firm in the face of the recapitalisation in case of failure to raise the required capital from the shareholders.
“There are other plans on ground that in case of failure to raise money from the public. We have over N4 billion, we are going to raise N13.4 billion and we have assurance that 70 per cent is coming from major investors, 30 per cent will be done privately.
There is an extension, we are still working against June and by April, we will be done with our recapitalisation plans.
Balogun, speaking on future plan of LASACO especially after 40 years of existence as a corporate entity, noted that all over the world, insurance firms that are making waves engage in diversification.
He said LASACO Assurance, wants to toe this line by diversifying into hospitality and real estate sectors.
According to him, the company has floated a real estate firm called LASACO Property. He said revenue from these businesses would augment income from its insurance business to make the company stand tall.