The Board of Directors of Consolidated Hallmark Insurance Plc has advanced its recapitalization plans, with approval of its shareholders to increase her authorized share capital from N7.5 billion to N10 billion. This is to enable it comply with the minimum paid up share capital requirement set for insurance companies in the country.
At the Company’s Extra Ordinary General Meeting held in Lagos, the Directors also got the approval of the shareholders 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.
Also there was a resolution empowering the Directors to raise whether by way of private/public, special offering, right 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.
Obinna Ekezie, chairman, Board of Directors in his address at the meeting said to enable the Company comply with the recapitalisation, it will be embarking on capital raise through a series of measures including but not limited to Private Placement, Rights Issue, Mergers & Acquisition/Business Combination etc, to which it has received approval of NAICOM.
He said that its earlier capital raise in 2017/2018 financial year has started impacting positively on its operations.
“I am glad to inform you that the operations of your company have since been enhanced with the earlier capital raise in 2017/2018 as can be seen in the nine months ended 30th September 2019 perormance.
“Although the anticipated business climate is yet to be attained, additional resources deployed in operations have led to the latest results”.
Ekezie disclosed that profit after tax (PAT) of N519.6 million was recorded during the third quarter of 2019 as against the N355.9 million recorded in the corresponding period of 2018, representing a 46 percent rise.
The result also revealed significant improvements in other indices, as gross premium written for the period grew by 23.7 percent 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.
Ekezie also noted that there are strong indications that this trend would not only be sustained, but possibly surpassed as the financial year draws to a close.
He also informed shareholders that Consolidated Hallmark was in the verge of being granted an operational license by NAICOM to operate a Micro-Life Insurance subsidiary.
“Statutory deposit and license 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.”
“We believe firmly that with your approval and continued support, your company will emerge a stronger and more formidable player in the sector, adequately equipped to meet the growing needs of our rapidly expanding clientele and with the ability to retain a higher proportion of risks hitherto ceded, he said.
Modestus Anaesoronye
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