Shareholders of Consolidated Hallmark Insurance Plc, were treated to combined feats of performance of not only 2020 annual report and accounts but were put on the hope cruise in anticipation of conducive environment which takes into account injection of additional capital and improved drive towards awareness that will record another improved performance.
This formed the connecting web as the board chairman, Obinna Ekezie, unveiled the 2020 business score for CHI telling shareholders and stakeholders alike that the company “is once again reporting a positive result,” despite limitations on the economy during the financial year.
Screening the performance with improved figures on all fronts, Ekezie said the general insurer generated an all time high gross premium written of N9.77bn, 12% higher compared with the N8.69bn performance for 2019. Similarly, the net underwriting income grew from N5.46bn to N6.5bn.
Also in the period under review, claims expenses jumped by 21% 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.”
Stated in the combination of positive result is the 8.6% 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. Total assets also moved up by 22%, growing from N11.74bn to N14.31bn in the year under review.
Dividend approved interim though, was N216.8 million which translates to two kobo per share to shareholders, Ekezie said this is “in appreciation of their faith in the company.”
The group managing director, 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 company’s preference for 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% by raising capital to N5.65bn in December 2020 ahead of the earlier deadline of December 31, 2020 for 50% as a general business insurer. The shareholders fund as at end of December 2020 was N8.03bn.
In addition, Consolidated Hallmark helmsman 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.
