By Adedapo Adesanya
Consolidated Hallmark Insurance (CHI) Plc has attained 50.7 per cent of its planned N10 billion recapitalisation exercise as directed by the National Insurance Commission (NAICOM).
The firm has been able to raise N5.065 billion, meaning the underwriter has now met and surpassed the threshold expected of a general insurance company like Consolidated Hallmark by December 2020.
Business Post had earlier reported that the commission ordered insurance companies with a composite license to upgrade their capital base from N5 billion to N18 billion; Life insurance firms were required to increase their minimum capital requirement from N2 billion to N8 billion, amounting to 400 per cent increase in their capitalisation.
Similarly, general insurance companies are to raise their capital base to N10 billion from N3 billion as reinsurance firms will now need N20 billion capital base to operate in the country.
They are expected to have fully increased their capital to the new threshold by September 2021 but must have realised 50 per cent of their capital by December 2020.
At an interactive session with its stakeholders this week tagged Time-Out With Our Partner, the Group Managing Director/CEO, Mr Eddie Efekoha, applauded the brokers who have been doing businesses with the company over the years, promising that the insurer will not disappoint them as well as the clients they represent.
He equally applauded shareholders, customers and other stakeholders of the company who have stood by it during tough and better times, stating that the company has consistently rewarded shareholders with returns on their investments, promising that this would even be improved upon post recapitalisation exercise.
He noted that he was not fully sure on board with using paid-up capital as the definition of capital under the current recapitalisation exercise by NAICOM, but he stressed that the company will continue to be a major player in insurance service space post recapitalisation exercise.
“We will recapitalise in a manner that doesn’t affect CHI or its stakeholders. We will do it in record time. Already, we have met the N5 billion capital by December 2020. The process for the next phase has started,” Mr Efekoha said.
He added that the underwriting firm will not go into merger because it needs funds, but can go into merger discussion if it will increase its market size, a development, he said, will favour its stakeholders.
Also speaking at the event, the president, Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs Bola Onigbogi, applauded the insurer for being innovative in its products and service delivery, pointing out, that the company has never for once, renege on its promises.
While urging the company to always strive to be better, she charged the underwriter to continue to meet its claims obligations just as it has always been doing.
Similarly, the head, marketing, CHI HMO, Mr Olusegun Tutoyi, said, the Health Management Organisation(HMO) has a national license, meaning, it can operate across the country, urging, people to patronise the company for access to quality healthcare services, promising that, the services are internationally competitive.
Modupe Gbadeyanka