CHI News

August 17, 2020

CHI Plc Raises N1.1bn as Rights Issue Records Success

Consolidated Hallmark Insurance (CHI) Plc has successfully raised N1.056 billion from existing shareholders through a rights issue of 2,032,500,000 ordinary shares of 50 kobo each at 52 kobo per share.


The result of the offer, which closed on June 8, 2020, and has just been approved by the Securities and Exchange Commission (SEC) showed a 100 per cent subscription.

CHI Plc said the success recorded in spite of the prevailing tough economic environment from the COVID 19 pandemic was a demonstration of high confidence of the shareholders.


The company added that the successful outcome of this rights issue was a significant boost to its quest to meet the new capital regime announced by the National Insurance Commission (NAICOM).


Commenting on the successful outing, Group Managing Director/CEO of CHI Plc, Mr. Eddie Efekoha, expressed delight at the good result despite the challenging period the offer was held during look-down occasioned by the COVID-19 pandemic.


“It is great to see investors’ confidence and trust in our company being exhibited with the full subscription of the rights offer, with several shareholders taking up their rights fully and applying for additional units at a time when investors’ appetite is dampened due to the ravaging pandemic,” Efekoha said.


He explained that the rights issue is the first in the series of steps that will put the company on the track of achieving not just its recapitalization objectives, but also the growth strategy as a group.


“We at CHI Plc are particularly happy with the positive response to the offer and would like to thank all our shareholders for their belief in the Board and Management of the organisation to always deliver excellent performance,” he added.


Meanwhile, CHI Plc has continued to sustain its growth path going by the unaudited results for the half-year ended June 30, 2020. Gross premium written grew from N5.16 billion in 2019 to N5.33 billion in 2020.


Net underwritten income improved from N3.096 billion to N3.157 billion, while Profit Before Tax (PBT) rose by 12 per cent from N390.5 million in 2019 to N444.4 million. Total assets rose from N11.682 billion as at June 30, 2019 to N12.170 billion during the corresponding period of 2020.


The results showed the group’s performance which also includes: Grand Treasurers Limited (GTL); CHI Capital Limited; CHI Microinsurance Limited and Hallmark Health Services Limited (HMO).

Source: ThisDay