CHI Plc Restates Commitment to Regular Dividend Payment
Consolidated Hallmark Insurance (CHI Plc) has restated its commitment to continue to reward investors, having paid dividend for seven out of its 11 years in operations.
The Chairman of CHI Plc, Mr. Obinna Ekezie, stated this in his address to shareholders of the company 24th annual general meeting (AGM) held in Lagos yesterday.
Ekezie said the company’s disciplined approach to cost management led to a profit after taxation(PAT) of N407.074 million for the year ended December 31, 2018.
Out of the profit, the directors recommended a dividend of N162.6 million, that translated to two kobo per share.
“We shall remain committed to our promise of regular dividend payment, God willing, having paid dividends seven nancial years out of eleven of our operations in the past. This year, we are proposing a total dividend payment of two kobo per share subject to your approval at this meeting. This will translate to a total dividend payout of N162.6 million from our 2018 operations,” he said.
Speaking on the financial performance of the company, the Managing Director/CEO, CHI Plc, Mr. Eddie Efekoha said the results of their performance in 2018 was an improvement on the growth projections for the industry.
“It is an all-time high rise in revenue, hitting a gross premium written of N6.865 billion, an increase of 20.85 per cent over the 2017 gure. Business retention remains good, even as we have further energized our Retail and agency segments to grow new business in ow into the group. The retail segments achieved a combined growth of 135per cent in 2018 on their 2017 performance,” he said.
According to him, CHI Plc’s revenue diversi cation drive was a major factor that aided the sustained nancial performance through the challenging market conditions of 2018, further reinforcing its role as a formidable player in the Insurance Industry.
“We have continued to ful l our claims payment obligations to customers promptly amidst rising claims in the industry, with N4.787 billion on claims settlement in 2018 when compared with the N3.354 billion. The 42.72 per cent increase, though signi cant, is a reduction of the 93 per cent growth in 2017 claims expenses over that of 2016. The increase in the gure for 2018 is attributable largely to a few large one-offs with a single payment on a marine hull loss amounting to N2,174 billion. Signi cant recoveries on overall claims expenses amounting to N2.984 billion were, however, made from our robust reinsurance arrangement,” Efekoha said.