Insurance firm raises N1.2bn from shares

A recent Rights Issue by Consolidated Hallmark Insurance (CHI) Plc has seen 10 percent full subscription with the firm raising about N1.2 billion to strengthen its operations.

It offered a Rights Issue of 2.033bn ordinary shares of 50 kobo each at 52 kobo per share. The result of the offer which closed on June 8, 2020, has been approved by the Securities and Exchange Commission (SEC).

Details show that 99 shareholders who were provisionally allotted 681.466 million shares accepted their rights in full and were fully allocated accordingly.

Out of this, 68 shareholders applied for more shares totaling 1.290bn shares and were allotted 1.290bn from the renounced rights, making the offer 100% allotted.

The company strives to meet the new capital regime announced by the National Insurance Commission (NAICOM). The agency mandates General Insurance

Business to have N5bn capital by December 2020 and will rise to N10bn by September 2021.

Group Managing Director/ CEO of CHI Plc, Mr. Eddie Efekoha expressed delight at the good result. “It is great to see investors’ confidence and trust in our company being exhibited with the full subscription of the rights offer, with several shareholders taking up their rights fully and applying for additional units at a time that investors’ appetite is dampened due to the ravaging pandemic.”

CHI Group also sustained its growth path when it published its unaudited half year ended financial statement for the period ended June 30, 2020 recently.

According to the report, the group’s performance which also includes Grand Treasurers Limited (GTL) CHI Capital Limited, CHI Microinsurance Limited and Hallmark Health Services Limited (HMO), achieved a Profit Before Tax (PBT) of N444.4m when compared with the N390.5m recorded in the corresponding period of 2019. This represents a 12% rise.