Consolidated Hallmark Insurance grows PAT by 48%

By InstinctBusiness Apr 3, 2020 0

Consolidated Hallmark Insurance Plc (CHI Plc) has announced a growth of 48 per cent in profit after tax (PAT) for the year ended December 31, 2019, despite the challenging operating environment. The insurance firms recorded improvement in all performance indicators.

According to the insurance company, it posted growing written premium of N8.691 billion in 2019, showing a growth of 27 per cent compared to N6.864 billion, while net earned stood at N4.945 billion, up from N4.273 billion in 2018. Net commission paid was N1.679 billion as against N1.799 billion the previous year.

Management expenses rose 16 per cent to N2.067 billion, compared with N1.778 billion. Understanding profit jumped 51 per cent to N1.828 billion, from N1.207 billion.

CHI Plc ended the year with profit before tax of N711.474 million, indicating an increase of 33 per cent compared with 534.438 million in 2018, while PAT grew from N406.71 million to N600 million in 2019.

CHI Plc recently floated a right issue to raising additional capital of N1. billionfresh capital of about N1.057 billion.

The Managing Director/Chief Executive Officer of the CHI Plc, Mr. Eddie Efekoha, expressed confidence that right issue would be successful because the shareholders believe in the company.

He further explained that, “We have shown commitment to shareholder value creation and paid dividend time and again. The company is one of the most consistent dividend-paying publicly quoted firms amongst listed companies generally, and particularly in the insurance sector. We enjoin the shareholders to exercise their rights in full”.

According to him, the company is rapidly expanding its operations into other financial services business with various subsidiaries that are contributing to revenue.

“The latest subsidiary that has been added to the stable is the CHI Microinsurance Limited, a micro life assurance company recently granted approval in principle by NAICOM and set to commence operations by the second quarter of this year,” he said.