By Peter Egwuatu

Despite the insurance industry recapitalization currently on hold, Consolidated Hallmark Insurance, CHI Plc, has disclosed that its plan of meeting the N10 billion capital base is still on course as it recorded  8.6 per cent growth in profit for the financial year ended December 31, 2020.

The Chairman of CHI Plc, Obinna Ekezie, stated this at the Annual General Meeting, AGM, held in Lagos,  Stating, “Our successful Rights Issue sent a signal of our commitment towards meeting the new capital requirement, as we achieved 50.7 percent    of the mandated N10 billion thresholds by raising our capital to N5.065billion in November 2020, ahead of the earlier deadline of December 31, 2020 for 50 per cent as a General Business insurer. Your Company shareholders fund stood at N8.03 billion as at end of December, 2020.”

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Addressing shareholders at the meeting, Ekezie said: “The summary of our key figures show that we generated an all-time high Gross Premium Written of N9.77 billion which represents a 12 per cent growth when compared with the N8.69 billion reported in the same period of 2019. 

The net underwriting income grew to N6.5 billion in 2020 from N5.46 billion in 2019. Claims expenses jumped by 21 per cent to N 4.17billion in 2020 from N3.45billion in 2019, an affirmation of our commitment to continually maintain our sterling reputation of ensuring that customers get value through prompt payment of all valid claims.

“We also recorded a modest growth of 8.6 per cent in Profit Before Tax which moved to N772 million in 2020 from N711million in the preceding year, while Profit After Tax increased to N677.98 million from N600.31 million in 2019. 

Total Assets increased by 22 per cent, growing to N14.31 billion in the year under review from N11.74 billion.”

On future outlook, he said: “The business operations now getting back fully to normal and the effects of the global pandemic gradually waning, especially in our local operating environment, we are quite hopeful of further improvement in performance.”