Consolidated Hallmark Insurance Requires N4bn To Recapitalize
By Ngozi Onyeakusi — In line with the National Insurance Commission ( NAICOM) recapitalization requirement, Consolidated Hallmark Insurance Plc has disclosed that it requires N4 billion to recapitalize.
The Managing Director, CHI, Eddie Efekoha who made the disclosure at the August Edition of Nigerian Council Insurance Brokers (NCRIB) Members evening Tuesday in Lagos said CHI will visit the Nigerian Stock Exchange (NSE) for the purpose.
According to Efekoha, the recapitalisation directive from the NAICOM requires underwriting firms to recapitalize to tune of N10 billion in order to retain its existing license.
He pointed out that the company had in a bid to shore up its capital base, engaged in capital raising activities that has already brought in N1.2 billion adding that the company’s shareholder funds presently stood at over N6 billion.
Efekoha assured that CHI has been in the business of recapitalizing adequately even without been directed by the regulator.
He said the company carried out a rights issue where N500 million was raised from existing shareholders. Another successful private placement raising N724 million through new shareholders was recently concluded, he said.
“This shows we have adequate experience and capacity to raising the capital required.”
Efekoha stated that the company is not averse to mergers and acquisition provided that the benefits from such acquisition align with the company’s corporate goals.
He said the company’s consideration of a merger is not necessarily because the required N10 billion can’t be raised, but because some organic and inorganic benefits can be accrued to the firm through the process.
Agusto & Co recently rated the firm BBB, Efekoha said the rating indicates a stable outlook for the firm.
Earlier in her presentation, the Executive Director, Operations CHI, Mary Adeyanju, affirmed the company’s strengthened position among industry players.
According to her, the company has consistently paid dividend to shareholders amounting to N1.38 billion while claims paid in the last five years amounted to N11 billion.
NCRIB President, Mr Shola Tinubu lauded CHI for its excellent business and financial performance, even as he commended it for hosting the event.
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