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.
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.
- 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.
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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