Consolidated Hallmark Insurance said it paid N216.8m dividend to its shareholders for the 2020 financial period. The Chairman, Obinna Ekezie, disclosed this during the company’s annual general meeting.
He said, “In line with our desire to continually ensure appreciable returns to our shareholders, the board of directors wishes to recommend an interim dividend of N216.8m for your consideration and approval.
“This translates to two kobo per ordinary share of 50 kobo subject to appropriate withholding tax.” According to the company’s annual report, the chairman said that despite the limitations on the economy in 2020, the company reported a positive result.
He said, “The summary of our key figures shows that we generated an all-time high gross premium written of N9.77bn which represents a 12 per cent growth when compared with the N8.69bn reported in the same period of 2019.”
Giving more details of the financial performance, he said that the net underwriting income grew from N5.46bn in 2019 to N6.5bn in 2020. Claims expenses jumped by 21 per cent from N3.45bn in 2019 to N4.17bn in 2020, an affirmation of its commitment to continually maintain its reputation of ensuring that customers got value through prompt payment of all valid claims, he said.
The chairman said the company also recorded a modest growth of 8.6 per cent in profit before tax which moved from N711m during the preceding year to N772m in 2020, while profit after tax increased to N677.98m from N600.31m in 2019.
Total assets increased by 22 per cent, growing from N11.74bn to N14.31bn in the year under review, he added. The Managing Director of the company, Mr Eddie Efekoha, said as part of the company’ measures towards meeting the new recapitalisation requirement of the National Insurance Commission which was suspended, the company offered a total of 2,032,500,000 ordinary shares to existing shareholders, an offer which was fully subscribed.
“Our successful rights issue thus sent a signal of our commitment towards meeting the new requirement, as we achieved 50.7 per cent of the mandated N10bn thresholds by raising our capital to N5.065bn in November 2020, ahead of the earlier deadline of December 31, 2020 for 50 per cent as a general business insurer, Efekoha said. He said the company’s shareholder’ fund stood at N8.03bn as of end of December, 2020.