By Adedapo Adesanya
In line with the recapitalization directive of the National Insurance Commission (NAICOM), top insurance firm, Consolidated Hallmark Insurance, has revealed strategies on how it will attain the new directive which will take effect by June 30, 2020.
In line with its statutory powers and regulatory functions, NAICOM had on May 20, 2019 announced an increase in the minimum capital for insurance companies in Nigeria which according to the announcement the new minimum capital required for general business, was increased from N3 billion to N10 billion.
In a disclosure signed by the Managing Director of Consolidated Hallmark Insurance, Eddie Efekoha, the company stated that it presently has a capital base of approximately N6.1 billion based on its last audited financial report as at December 31, 2018.
It was also announced that the company plans to get the additional N3.9 billion in a short period so as to meet up with the new capital threshold of N10 billion.
The firm called for the support of its stakeholders to realise the new target, adding that its first line of action will be to issue additional shares by way of a rights issue which it intend will give existing shareholders the opportunity to increase their stakes in the company and enjoy the benefit of a lower offer price than that of a public offer.
The company revealed that with the backing of its shareholders that it has recorded a number of achievements worthy of commendation,
“The company recorded a 19 percent growth in its gross premium income in 2018. “It achieved a 330 percent growth in its income line from the retail segment of its portfolio, a result of the implementation of its retail expansion strategy,” it said.
On the governance side, the firm achieved 87 percent and 84 percent full compliance with corporate governance principles of NAICOM and Stock EC respectively.
It also said the company, also improved on its latest credit rating by Agusto & Co. from a “Bbb-” to a “Bbb.”
The statement said the additional capital will not only enable Consolidated Hallmark to meet the regulatory requirement, but it will also be deployed to specific initiatives that will help the firm to hasten its growth and consolidate its leadership position in the industry while delivering exceptional returns to you as a shareholder.
The notice further listed other options available to the company to achieve the additional capital required, which includes private placement, public offer, and merger and acquisition.
The insurance firm then said it will communicate in due course the definite and concrete arrangements to implement any of the options viable to the company.
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