CHI records N9.77bn GPW, settles N4.17bn claims in 2020 financial year
Consolidated Hallmark Insurance Plc has announced an all time high performance of N9.77 billion gross premium written, for the financial year 2020, representing 12 per cent increase compared with the N8.69 billion recorded in year 2019.
Besides, in the period under review, claims settlement rose by 21 per cent from N3.34 billion last year to N4.17 billion in 2020, which the chairman declared as “an affirmation of our commitment to continually maintain our sterling reputation of ensuring that our customers get value through prompt payment of all valid claims.
Addressing shareholders of the company during the 26th yearly general meeting held in Lagos, the Chairman, Obinna Ekezie, said that the company has once again reported positive results despite limitations in the economy during the financial year.
According to him, total assets of N14.31 billion was recorded last year as against N11.74 billion realized in the previous year, representing a 22 per cent increase.
Similarly, the net underwriting income went up from N5.46 billion to N6.5 billion.
The combination of positive results is 8.6 per cent growth in profit before tax which increased to N711 million to N772 million, while profit after tax increased to 677.98 million from N600.31 million.
As a result, the interim dividend approved was N216.8 million and this translates to two kobo per share to shareholders in appreciation of their support and faith in the company.
However, the group managing director, Eddie Efekoha, in his remarks spoke on the impact of the sharp fall in interest rates which caused the investment income to slide from N1.08 billion to N940 million because of the preference of security of investment portfolio than pursuit of high-risk, high return options.
Efekoha, however, explained that the company is not constrained by the increasing claims but it calls for “improved underwriting measures to isolate bad risks and reward good ones. We have therefore adopted enhanced underwriting measures to enhance operational efficiency and customer service.
The CHI boss reiterated that despite the Court order on recapitalization, the company has been proactive, first, it achieve 50.7 per cent by raising capital to N5.65 billion in December, 2020 ahead of the earlier deadline of December 31, 2020 for 50 per cent as a general business insurer. The shareholders fund as at end of December, 2020 was N8.03 billion.
The Consolidated Hallmark boss also recounted the rating and awards the company has secured so far which include the re-certification of ISO Quality Management Systems certification in 2020 and Stable BBB rating by Agustin & Co. setting the company as an investment grade business with strong liquidity and capital adequacy.
