Consolidated Hallmark Insurance Profit hit by 56% to N659m in Nine Months

An efficient general business insurance company Consolidated Hallmark Insurance (CHI) Plc has announced an impressive recorded result for the nine months and is getting ready to raise additional N6.618 billion to further enhance its operations going forward.

According to the unaudited report for the nine months ended September 30, 2019, showed gross written premium of N6.687 billion, up by 23 per cent compared with N5.405 billion in the corresponding of 2018.Net premium income stood at N3.857 billion as against N3.369 billion, while net underwriting income ended at N4.306 billion, up from N3.656 billion.

Meanwhile, the Profit before tax jumped by 56 per cent from N422 million to N659 million, just as profit after tax (PAT) rose from N355 million to N519.6 million.

The shareholders of the CHI Plc will on November 21, authorise the board to raise about N1.117 billion through a rights issue. The shareholders will also approve that the board raise another N4.5 billion.

Particularly, the directors are asking that they be authorized 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, through the issuance of shares, long term debt, preference shares (redeemable or irredeemable), convertible and non-convertible securities or depository receipts or any other instrument(s), whether as a standalone transaction, or a combination.”

However, in order to accommodate the new shares to be issued, the company will also increase its authorised share capital from N7,500,000,000 divided into 15,000,000,000 Ordinary shares of 50 kobo each to N10,000,000,000 divided into 20,000,000,000 Ordinary shares of 50 kobo each with the creation of additional 5,000,000,000 Ordinary shares of 50 kobo each.