Shareholders Approve Fresh Capital for Consolidated Hallmark Insurance

Shareholders of Consolidated Hallmark Insurance (CHI) Plc has given approval to the board of the company to raise additional funds as part of efforts to boost its operations, play a leading role in the industry and deliver superior returns on investments.

At an extra-ordinary general meeting (EGM) held in Lagos, the shareholders authorised the directors to raise additional capital of up to N1.057 billion through a

Right Issue of 2,032,500,000 units to the ratio of 1:4 at N0.52 per share. They also the authorised the directors to raise, whether by way of private/public, special offering, rights issue or a combination or any other method(s) they deem fit, additional capital of up to N4.5 billion or its equivalent whether locally or internationally or a combination of both, through the issuance of shares, long term debt, preference shares (redeemable or irredeemable), convertible and non-convertible securities or depository receipts or any other instrument(s), whether as a standalone transaction, or a combination. Addressing the shareholders, Chairman of CHI Plc, Mr. Obinna Ekezie, said with your approval and continued support, the company would emerge a stronger and more formidable player in the sector, adequately equipped to meet the growing needs of its rapidly expanding clientele and with the ability to retain a higher proportion of risks hitherto ceded. According to him, the operations of CHI Plc had since been enhanced with the earlier capital raise in 2017/2018, noting that the nine months ended September 30, 2019 attested to that.

“Although the anticipated business climate is yet to be attained, additional resources deployed in operations have led to the latest results. Profit after tax (PAT) of N519.6 million was recorded during the third quarter as against the N355.9 million recorded in the corresponding period of 2018, representing a 46 per cent rise. The result also revealed significant improvements in other indices. Gross premium written for the period grew by 23.7 per cent to N6.687 billion from N5.404 billion reported in September 2018. Also, total assets of the group rose to N11.159 billion from N10.821 billion during the corresponding period. There are strong indications that this trend would not only be sustained, but possibly surpassed as the financial year draws to a close,” Ekezie said. The chairman disclosed that the company was on the verge of being granted an operational licence by the National Insurance Commission (NAICOM) to operate a Micro-Life Insurance subsidiary.

“Statutory deposit and licence application fee have been paid to the Central Bank of Nigeria and NAICOM respectively. The anticipated commencement date of full operations by this subsidiary is early in the new year,” he stated.