Consolidated Hallmark Insurance (CHI) PLC is set to raise additional capital to the tune of N734.5 million at its Extraordinary General Meeting (EGM) expected to take place on 28th of November 2018 in Lagos.
Shareholders will, at the meeting, formally give their approval for additional capital raise through private placement of 1,130,000,000 units at the price of 65 Kobo per share, which will bring N734.5 million to the coffers of the company.
The Insurance Company will also seek formal approval of shareholders for the increase in authorised shares of the company from the current 10,000,000,000 units of 50 Kobo par value per share to 15,000,000,000 through the creation of an additional 5,000,000,000 units. The Share Capital of the company will thus be increased from N5,000,000,000 to N7,500,000,000.
These, the company said, is next in the series of proactive efforts of the Board and Management to boost the working capital of the company and adequately position it as a leading player in the underwriting of big ticket insurance transactions, having successfully raised N500 million through the Rights Issue to existing shareholders of 1,000,000,000 units that was 108 per cent subscribed to during the last quarter of 2017 but concluded in the first quarter of 2018.
The Managing Director of the company who is also the current president of the Chartered Insurance Institute of Nigeria (CIIN), Mr. Eddie Efekoha, is optimistic of a very successful outing at the meeting as shareholders of the company have often been delighted with the regular dividend payments over the years.
Out of 10 financial years that the company has been quoted on the Nigerian Stock Exchange(NSE), he said, the insurer has paid out dividends seven times amounting to a total of N1.22 billion.
Also, he added that the deployment of capital raised during the Rights Issue is impacting positively in results as noticeable in the impressive performance during the Nine Months Ended 30th September 2018. Profit After Tax, according to him, rose significantly to N356 million from the N209 million recorded during the corresponding period of 2017 while Gross Premium Income rose to N5.4billion from the previous N4.5bilion.
He said, CHI has also been consistent in promptly meeting its claims payment obligations to customers, while over N11.7 billion has been expended on claims in the last five years, precisely from 2014 to September 2018. Of this amount, he said, over N4billion has been paid in 2018 alone.
Efekoha said the future plans of the company includes broadening its product offerings to take advantage of the on-going market development initiatives of the industry regulator and strengthening its technology in order to deepen its footprints in the retail market whilst delighting its existing corporate customers.