A leading general business insurance company Consolidated Hallmark Insurance (CHI) Plc has received its shareholders approval to raise additional funds in order to increase its authorized share capital from N7.5 billion to N10 billion ahead of the 30th of June 2020 deadline given to insurance companies in the country to recapitalise.
At the Company’s Extra Ordinary General Meeting (EGM) held in Lagos, the Directors also secured 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.
The shareholders also 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.
In his address, the Chairman, Board of Directors, Obinna Ekezie, informed the shareholders that the company’s earlier capital raise in 2017/2018 financial year has started impacting positively on its operations.
“I am pleased to inform you that the operations of CHI had since been enhanced with the earlier capital raise in 2017/2018, as this can be seen in the nine months ended September 30, 2019 performance.” Ekezie said.
Ekezie added 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.
There are strong indications that this trend would not only be sustained, but possibly surpassed as the financial year draws to a close.”
He further explicated that, shareholders of 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.
“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,” Ekezie assured.