Consolidated Hallmark Insurance plc (CHI) has upped its premium income for 2009 by 15.8 percent. The company recorded growth in its performance for the 2009 financial year, posting a premium income of N3 billion against N2.59 billion posted in 2008 thus representing 15.8 percent increase.
CHI’s earned premium stood at N2.4 billion. Its investment income appreciated as well, growing from N115.4 million in the previous year to N160.1 million in the year under review. The company says it has accommodated its loss in investment of the previous years through (diminution) which came as result of price crash in the stock market, pointing that the firm is now properly positioned for growth.
The company would be announcing a profit before tax of N563.4 million from N565 million in 2008, a difference of 0.2 percent, when it converges for the 15th Annual General Meeting billed for Tuesday at the Chelsea Hotel, Abuja.
The profit after tax however dropped to N242.7 million as against N360.5 million in 2009, while the total asset base closed at N5 billion from N5.6 billion the previous year. As contained in the statement due to be presented to shareholders at the meeting, the company chairman, Obi Ralph Ekezie stated that the cumulative effect of the debt writ-off and diminution in value of investments in the capital market and the goodwill item accounted for the reduction.
This he said is a bold decision to free it of debts that are doubtful of recovery, while having taking stringent credit control polices from allowing debts to build up in the future.
Fola Daniel, commissioner for Insurance had said companies must provide for outstanding premiums that are more than 90 days in their books, marching asset with liability to increase solvency of companies. This no doubt has been a challenge for insurance firms and has tined down their profit level for the year under review.
Eddie Efekoha, managing director and CEO, speaking on the performance in Lagos said the company in managing the environmental and regulatory challenges, and has been highly professional in its practice, taking into cognizance the level of capacity, attendant risks and shareholder interest. Efekoha said the company more than ever before has witnessed increased participation in oil and gas business which has moved from 4 percent in 2008 to about 11 percent in 2009.