Consolidated Hallmark records N9.77bn premium as profit peaks at N772m

Consolidated Hallmark Insurance Plc is consciously consolidated on its strategy of remaining a market leader with its profit before tax rising by 8.6 per cent to N772 million at the close of the of 2020 financial period from N711 million achieved in the corresponding period of 2019.

The audited business transaction of Consolidated Hallmark Insurance for the period ended December 31, 2020 showed that the general insurance underwriter’s gross premium written rose by 12 per cent to N9.77 billion from N 8.7 billion reported in the same period of 2019.

What is more refreshing is that shareholders of the company were treated to combined feats of performance of not only 2020 annual report and accounts but were put on the hope cruise of anticipated conducive environment which takes into account injection of additional capital and improved drive towards awareness that will record another improved performance.

Showcasing the performance of the company with improved figures on all fronts, Chairman of Consolidated Hallmark Insurance Mr Obinna Ekezie said the general insurer generated an all time high gross premium written of N9.77 billion, 12% higher compared with the N8.69 billion performance for 2019. Similarly, the net underwriting income grew from N5.46 billion to N6.5 billion.

Also in the period under review, claims expenses jumped by 21% from previous N3.45bn to N4.17bn which he underlined as “an affirmation of our commitment to continually maintain our sterling reputation of ensuring that customers get value through prompt payment of all valid claims.”

In the combination of positive result is the 8.6% growth in profit before tax which moved from N711 million to N772 million, while profit after tax increased to N677.98 million from N600,31 million. Total assets also moved up by 22%, growing from N11.74bn to N14.31bn in the year under review.

Dividend approved interim though, was N216.8 million and this translates to two kobo per share to shareholders “in appreciation of their faith in the company.”

The Group Managing Director, Eddie Efekoha in his statement enlightened stakeholders on the impact of the sharp fall of interest rate which caused the investment income to slide from N1.08bn to N940 million because of the preference of security of investment portfolio than pursuit of high-risk, high return options.

Efekoha cleared that the company is not constrained by 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.”

Despite the Court order on recapitalisation, he said the company has been proactive, first, it achieved 50.7% by raising capital to N5.65bn in December 2020 ahead of the earlier deadline of December 31, 2020 for 50% as a general business insurer. The shareholders fund as at end of December 2020 was N8.03bn.

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