Consolidated Hallmark Insurance Plans Private Placement

Consolidated Hallmark Insurance Plc (CHI) is preparing for a private placement that will inject fresh capital into the company and bring in new investors.

In order facilitate the private placement, the company would be having an extra-ordinary meeting (EGM) on November 28, in Lagos, to get the approval of the shareholders will give their authorisation to the directors.

The directors are requesting that the authorised share capital of CHI Plc be increased from N5 billion divided into 10 billion ordinary shares of 50 kobo each to N7.5 billion ordinary shares divided into 15 billion ordinary shares with the creation of additional five billion ordinary shares of 50 kobo each.

In a notification to the Nigerian Stock Exchange (NSE) regarding the EGM, the directors want to get the authorisation of shareholders to allot 1.130 billion units of ordinary shares of 50 kobo each at 65 kobo per share through a private placement.

It is believed that the private placement is being undertaken by CHI Plc to meet the new capital requirements stipulated by the National Insurance Commission. CHI Plc had last year raised additional funds through a rights issue and the company has been recording impressive performance in recent times. It ended the nine months to September 30, 2018 with a growth of 70 per cent in profit after tax (PAT). The company recorded PAT of N356 million in 2018, up from N209 million in the corresponding period of 2017. CHI Plc had paid a dividend of N120 million in respect of 2017 financial year after posting PAT of N406.2 million.

Commenting on performance, the Managing Director/ Chief Executive Officer of CHI Plc, Mr. Eddie Efekoha said it was a show of a show of tenacity. “Business retention was good, giving us room to focus on our new business initiatives. While our revenue diversification plans are still at its preliminary stages, we are recording good progress in deepening our footprints in the retail market segments which we believe holds significant untapped potential for revenue growth,” he said.

According to him, the company was able to grow its net premium Income by five per cent to N3.683 billion and was also able to fulfill its claims payment obligations as at when due, successfully settling claims to the tune of N3.354 billion an increase of 93 per cent over the N1.731 billion paid in 2016.