Consolidated Hallmark Insurance Plc has projected a Profit After Tax (PAT) of N282.7 million for the first quarter (Q1) of 2021, indicating a 34.9% increase from the N209.5 million it recorded in Q1 2020.
This is according to the firm’s earning forecast sent to the Nigerian Stock Exchange market, and seen by Nairametrics.
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Key highlight of the firm’s earnings forecast
- Gross premium written is expected to increase to N3.85 billion, from N3.11 billion, 23.65% Y-o-Y.
- Net premium income is projected to rise to N2.39 billion, 31.3% Y-o-Y.
- Net claims incurred is projected to increase to N954.5 million, 89.2% Y-o-Y
- Investment income is set to rise to N281.1 million, 25.26% Y-o-Y.
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Others are:
- Net operating income is projected at N1.71 billion
- Taxation is projected at N53.85 million
- Cash from operating activities is projected at N164.93 million.
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Bottom line: The earnings forecast for the firm looks conservative as key financial metrics are expected to go up in 2021.
With the announcement of a general economic recovery in Q1 2021, the impact of this recovery might not be as instantaneous as some people expect, due to time lag effect, probably influencing the choice of a conservative outlook.
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