Consolidated Hallmark Insurance PAT up 108 %, pays dividend
by Modestus Anaesoronye
May 24, 2018 | 12:54 am| | | Start Conversation
Consolidated Hallmark Insurance (CHI) Plc, the group, during the financial year ended December 31, 2017 recorded a 74 percent increase in Profit Before Tax (PBT) of N641.05 million as against N368.13 million in 2016, while Profit After Tax (PAT) rose by 108 percent from N194.99 million in 2016 to N406.21 in the review year.
From the profitability, the shareholders got a dividend of 140 million, translating to 2kobo per share.
Obinna Ekezie, chairman of the Company who disclosed these at its 23rd Annual General Meeting held in Lagos said “in keeping our promise of ensuring better returns , our company was able to grow its bottom line.
Ekezie, said the company believes that shareholders deserve all the reward they can get through regular dividend payments and more for their continued faith and firm belief in the company, stating that the company will continue to live up this expectation as it has always done severally in the past.
A further look at the result also show that investment income grew from N472.3 million in 2016 to N796.5 million in 2017, while the total assets of the company also rose significantly from N7.44 billion in 2016 to N9.49 billion in the review year.
“We are optimistic that on the successful completion of the final phase of our capital raise, full deployment of funds realised and the eventual emergence of our company as one of the top players in the financial service sector will benefit its esteemed shareholders in the long run.”
In keeping to its commitment to payment of claims, Consolidated Hallmark during the review year incurred claims expense of N3.354 billion, a 93 percent increase from N1.73 billion in 2016.
In the period under review, gross written premium was N5.66 billion as against N5.82 billion in 2016, showing a 3 percent marginal drop, while the net premium earned was N3.68 billion, up 5 percent in the review year.
Eddie Efekoha, managing director/CEO, Consolidated Hallmark Insurance Plc said the company performance in the year under review is a show of tenacity. “Business retention was good, giving us room to focus on our new business initiatives.”
Efekoha said “while our revenue diversification plans are still at its preliminary stages, we are recording good progress in deepening our footprint s in the retail market segments which we believe holds significant untapped potential for revenue growth.”
He stated that the Company’s capacity to underwrite large and more technical transactions have also continued to improve, evidenced in the growth of reserves from insurance contracts liabilities, from N2.41 billion in 2016 to N3.53 billion in 2017.
Looking into the future Efekoha said “In 2018, we shall continue the implementation of our corporate strategic plan which will enable us to reposition ourselves as leaders in the insurance industry. Emphasis shall also be placed on stringent cost monitoring measures to improve our efficiency levels.”
“We shall invest in new product development to adequately exploit the opportunities in the retail market segment. We are at advanced stages in the setting up of a microinsurance subsidiary called CHI Microinsurance Ltd to cater to the retail Life insurance markets. This we believe will improve our margins in the near future.”
“We shall also be strengthening the newly established health maintenance subsidiary, Hallmark HMO which is also at the verge of being licensed by the regulator, the National Health Insurance Scheme (NHIS), to deliver exceptional services that cater to the healthcare needs of our existing and potential clients. These and many more organic corporate actions are being taken to drive profitable medium-term growth despite uncertain market conditions.”
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