L – Mr Eddie Efekoha, Group Managing Director, Mr Obinna Ekezie, Chairman and Mrs Rukevwe Falana, Company Secretary of Consolidated Hallmark Insurance during the 26th Annual General Meeting of the Company in Lagos.
By Favour Nnabugwu
Consolidated Hallmark Insurance, CHI, in the financial year ended December 2020 announced a total assets of N14.31billion from N11.74billion recorded in the previous representing 22 percent increase.
Chairman, Mr. Obinna Ekezie while unveiling the 2020 business score for CHI told shareholders that the company has once again reported positive result, despite limitations on the economy during the financial year.
Ekezie said the company generated an all time high gross premium written of N9.77bn, 12 percent higher compared with the N8.69bn performance for 2019. Similarly, the net underwriting income grew from N5.46bn to N6.5bn.I
Also in the period under review, claims expenses jumped by 21 percent from previous N3.45bn to N4.17bn which he underlined as “an affirmation of our commitment to continually maintain our sterling reputation of ensuring that customers get value through prompt payment of all valid claims.”
In the combination of positive result is the 8.6 percent growth in profit before tax which moved from N711 million to N772 million, while profit after tax increased to N677.98 million from N600,31 million.
Dividend approved interim though, was N216.8 million and this translates to two kobo per share to shareholders “in appreciation of their faith in the company.”
The group managing director, Mr. Eddie Efekoha in his statement enlightened stakeholders on the impact of the sharp fall of interest rate which caused the investment income to slide from N1.08bn to N940 million because of the preference of security of investment portfolio than pursuit of high-risk, high return options.
Efekoha cleared that the company is not constrained by increasing claims but it calls for “improved underwriting measures to isolate bad risks and reward good ones. We have therefore adopted enhanced underwriting measures to enhance operational efficiency and customer service.”
Despite the Court order on recapitalisation, he said the company has been proactive, first, it achieved 50.7 percent by raising capital to N5.65bn in December 2020 ahead of the earlier deadline of December 31, 2020 for 50 percent as a general business insurer. The shareholders fund as at end of December 2020 was N8.03bn.
Consolidated Hallmark helmsman also recounted the rating and awards secured so far which include the re-certification of ISO Quality Management Systems certification in 2020 and stable Bbb rating by Agusto & Co, setting the company as an investment grade business with strong liquidity and capital adequacy.