Consolidated Hallmark Insurance Plc has opted to continue with its capital raising exercise despite the National Insurance Commission (NAICOM) scrapping the tier based capitalisation requirements last month.

Shareholders of the company at an extraordinary general meeting (EGM) held last week gave approval for the company to raise funds through a private placement.

1.13 billion units at the price of 65 Kobo per share, which would bring in an additional N734.5 million to the company.

Prior to this

CHI had last year raised N500 million through a rights issue. Proceeds were used to acquire a life insurance firm and set up a Health Maintenance Organisation (HMO), Hallmark HMO.

CHI is currently trading at N0.35 in today’s trading session on the Nigerian Stock Exchange (NSE), down 7.89%.

Results for the nine months ended September 30, 2018, show gross premium written increased from N4.5 billion in 2017 to N5.4 billion in 2018. Profit before tax increased from N360 million in 2017 to N422 million in 2018. Profit after tax also rose from N207 million in 2017 to N355 million in 2018.

Consolidated Hallmark Insurance Plc (formerly Consolidated Risk Insurers Plc) was incorporated on 2 August 1991. The Company changed its name from Consolidated Risk Insurers Plc to Consolidated Hallmark Insurance Plc following its merger with Hallmark Assurance Plc and The Nigerian General Insurance Company Limited in line with the consolidation reform of the National Insurance Commission (NAICOM) announced in 2005. Consolidated Hallmark Insurance Plc came into effect from 1 March 2007.

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