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Consolidated Hallmark Insurance Posts N6.8bn Gross Premium

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Consolidated Hallmark Insurance(CHI) Plc posted a Gross Premium of N6.8 billion in its 2018 financial year as against N5.6 billion it posted in the previous financial year.

This shows an improvement of N1.1 billion, representing about 21 per cent growth within the period under review.

Speaking at the annual general meeting(AGM) of the company in Lagos last week, Its chairman, Mr. Obinna Ekezie, said, notwithstanding the country’s macroeconomic challenges, the group recorded the highest gross premium since its inception.

He added that, due to investments made in strategic market development initiatives

and the high claims payout during the year, the operating expenses of the firm grew by 26.48 per cent to N1.77 billion in 2018 financial year.

With the management’s disciplined approach to cost management, he said, the group still recorded a Profit After Tax (PAT) growth from N406.2 million in 2017 to N407 million in 2018.

Having paid dividends seven financial years out of eleven of its operations in the past, he declared the intention of the board to pay a total dividend payment of two kobo per share, which translates to a total dividend payout of N162.6 million from its 2018 operations.

Similarly, managing director/CEO of the firm, Mr. Eddie Efekoha, said, CHI’s business retention remains good, even as it further energised its retail and agency segments to grow new business inflow into the group.

The retail segments, he added, achieved a combined growth of 135 per cent in 2018 on their 2017 performance, thus, a testament on its last year review where it reported progress being made in the deepening of its footprints in the retail market segments. “CHI’s revenue diversification drive was a major factor that aided the sustained financial performance through the challenging market conditions of 2018, further reinforcing its role as a formidable player in the Insurance Industry,” he pointed out.

He said his insurer has continued to fulfill its claims payment obligations to customers promptly amidst rising claims in the industry, with N4.7 billion spent on claims settlement in 2018 when compared with the N3.3 billion of 2017.

The 42.72 percentage increase, though significant, he said, is a reduction of the 93 per cent growth in 2017 claims expenses over that of 2016.

To him, “the increase in the figure for 2018 is attributable largely to a few large one-offs with a single payment on a marine hull loss amounting to N2.1 billion as significant recoveries on overall claims expenses amounting to N2.9 billion were however made from its robust reinsurance arrangement.”

Stating that the implementation of the company’s five-year corporate strategy plan has continued with increased vigour, following the setting up of a full-fledged Strategy function, he added that its internal processes are being reviewed to achieve operational efficiency and eliminate lapses;  while its technical operations has been restructured into a strategic business unit (SBU) model to drive greater efficiency.

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