Consolidated Hallmark’s investment gains push H1 profit to N27.1 billion

Consolidated Hallmark Holdings Plc reported a profit before tax of N27.10 billion for the six months ended June 30, 2026, representing an increase of 1,436% from N1.76 billion recorded in the corresponding period of 2025.

The strong growth in pre-tax earnings also translated to the bottom line, with profit after tax rising to N25.28 billion, up 2,083% from N1.16 billion in the same period of 2025.

Reflecting the surge in earnings attributable to shareholders, basic and diluted earnings per share increased to 233.19 kobo, compared with 10.68 kobo recorded in the corresponding period of 2025.

Key Highlights (H1 2026 vs. H1 2025)

• Insurance revenue: N25.04 billion (Up 9.21% YoY from N22.93 billion)
• Investment result: N27.33 billion (Up 2,120% YoY from N1.23 billion)
• Insurance service result: N2.61 billion (Down 19.89% YoY from N3.26 billion)
• Other operating expenses: N2.82 billion (Up 8.25% YoY from N2.60 billion)
• Net income: N27.12 billion (Up 1,338% YoY from N1.89 billion)
• Profit before tax: N27.10 billion (Up 1,436% YoY from N1.76 billion)
• Profit after tax: N25.28 billion (Up 2,083% YoY from N1.16 billion)
• Basic and diluted EPS: 233.19 kobo (Up from 10.68 kobo)

Driving the numbers

The sharp improvement in Consolidated Hallmark Holdings’ earnings was driven primarily by its investment results, which jumped to N27.33 billion from N1.23 billion a year earlier.

• A major contributor was a N24.01 billion net fair value gain on financial assets at fair value through profit or loss, compared with a N2.15 billion fair value loss in the corresponding period of 2025.
• This swing had a significant impact on overall profitability.

Interest income calculated using the effective interest method also strengthened, rising to N3.30 billion from N2.23 billion.

• Interest received increased to N2.72 billion from N1.38 billion, while interest on corporate loans contributed N518.85 million.

However, other investment income declined to N206.14 million from N718.66 million, largely because dividend income fell to N204.52 million from N699.62 million.

The group’s core insurance business recorded more moderate growth. Insurance revenue increased by 9.21% to N25.04 billion, with general insurance remaining as the dominant contributor.

• General insurance generated N23.13 billion, representing about 92.4% of total insurance revenue, compared with N22.05 billion in the prior-year period.
• Microinsurance revenue increased sharply to N982.03 million from N63.70 million, accounting for about 3.9% of insurance revenue, while CHI Life insurance revenue climbed to N927.04 million from N34.62 million, contributing about 3.7%.
• No HMO insurance revenue was reported for the 2026 period in the supplied segment analysis, compared with N778.02 million in the corresponding period of 2025.

Despite the increase in insurance revenue, the insurance service result declined to N2.61 billion from N3.26 billion.

• Total insurance service expenses remained broadly stable at N16.96 billion compared with N16.91 billion, but net expenses from reinsurance contracts held increased to N5.46 billion from N2.76 billion, weighing the insurance service result.

The 2026 insurance service expense breakdown included N11.44 billion in incurred claims and other expenses, N3.56 billion in acquisition expenses, and N2.87 billion relating to changes in past services.

• A N937.95 million risk-adjustment release for expired risks partly offset these costs.

Other operating expenses increased to N2.82 billion from N2.60 billion, while net credit impairment losses declined substantially to N17.73 million from N121.12 million.

Balance sheet

The group’s balance sheet expanded by 38% to N104.97 billion as of June 30, 2026, from N75.94 billion at the end of December 2025, driven mainly by a significant increase in financial assets.

• Financial assets rose by 58% to N72.68 billion from N45.90 billion, while statutory deposits more than doubled by 123% to N2.50 billion from N1.12 billion.
• Cash and cash equivalents also increased by 12% to N8.26 billion from N7.38 billion.

The expansion in the balance sheet was also reflected in equity, as retained earnings increased by 84% to N49.03 billion from N26.64 billion, while shareholders’ funds rose by 55% to N65.35 billion from N42.16 billion.

• On the liability side, borrowings declined by 28% to N3.07 billion from N4.26 billion.

Market reaction

CONHALLPLC closed at N6.35 per share on Thursday, August 27, 2026, representing a 1.6% gain from its previous closing price of N6.25.

The stock began 2026 at N4.34 per share and has gained 46.3% year-to-date, based on the supplied market data.