Underwriting firm, Consolidated Hallmark Insurance plc has secured the approval of its shareholders to raise fresh N2.5 billion to boost its operations.
The approval, which was secured as a special resolution during the Company’s 22nd Annual General Meeting held in Lagos, was in line with the firm’s 5- year strategic plan commencing 2016, which was put in place by Price Waterhouse Coopers.
“The directors be and are hereby authorized to raise, whether by way of private/special, public offerings, rights issue or a combination or any other method(s), additional capital up to N2.5 billion or its equivalent whether locally or internationally or a combination of both, through the issuance of shares, convertible securities or depository receipts or any other instrument(s), whether as a standalone transaction, which shall be determined by the directors, subject to obtaining the approval of relevant regulatory authorities”.
Obinna Ekezie, chairman of the company said one of the key initiative of the firm’s strategic plan is to raise capital to drive the next growth phase of the business and to enable the company withstand the forces of change that will likely happen in the industry.
Ekezie speaking on the performance of the company said the gross premium income for the year ended December 31, 2016 stood at N5.83 billion against the N6.04 billion generated in 2015, adding that the net premium income rose to N3.51 billion from N3.19 billion during the corresponding period.
According to him, the firm’s profit for the year was N195 million and profit before tax N368.13 million. He noted that the claims payment rose significantly from N1.34 billion in 2015 to N1.73 billion, an increase of 29 per cent and that the total assets moved from N7.02 billion in 2015 to N7.44 billion.
From the profit, the company paid a dividend amounting to N120 million, translating to 2 kobo per share, which according to the chairman was a gesture to further, demonstrate the commitment of the company to reward its shareholders in spite of the tough business climate.
Eddie Efekoha, managing director of the underwriting firm said the board and management of the company will continue to work hard to provide good dividend.
He said the company is currently undergoing a digital transformation exercise which will enable it position itself strategically and to also align with its strategic objectives, stressing that the efforts would help the company deliver exceptional returns to shareholders, be profitable and increase its market share, and that this is part of a comprehensive five years strategic plan currently being implemented.
Shareholders who spoke at the meeting thanked the board for paying dividend despite the tough business environment, while imploring the new chairman to move the company to the next phase of its growth for better value creation for shareholders.
Sunny Nwosu, chairman, Independent Shareholders Association of Nigeria (ISAN) commended the management for prompt payment of claims, stating that, this is the only way insurance can redeem its image and make meaning to the majority of Nigerians.
He urged them to sustain the ideals of good corporate institutions by constantly meeting their claims obligations.
Modestus Anaesoronye
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