The Managing Director/Chief Executive Officer of Consolidated Hallmark Insurance (CHI) Plc, Mr. Eddie Efekoha says its expansion initiative would bring more returns to the company and has assured shareholders of better dividends in the nearest future as strategies to boost the company’s performance are being put in place.
Efekoho who is elated by the recent successful raising of N500 million from the capital market through a Rights Issue said that recent capacity expansion and growth initiatives such as the establishment of new subsidiaries such as its Health Management Organisation (HMO) to focus on identified growth markets, launching of a revamped website with retail customer and broker interface, reinvigoration of the retail network and deployment of latest technology will help to further grow revenue.
He explained further that other strategies have been put in place to improve on the bottom line through cost-cutting initiatives in management expenses.
Speaking on the current share price of the stock, he said discerning investors would rather scramble to take position on the stock, at a bargain price now rather than sell their valuable stock that has consistently made returns for them via growth in assets and dividend payments over the years.
According to him, the intrinsic book value of the stock is presently over 70 kobo, and with its current liquidity levels in the market, more market players are now gearing up to take position while expecting an upside in price especially against the backdrop of the expected 2017 year end financials.
The company also grew its total assets value to N8.14 billion from N4.65 billion in 2007. CHI is one of the few insurance businesses that delivers value to its shareholders in the Nigerian insurance market though regular dividend payouts.
Besides, CHI Plc has consistently grown revenue since the 2007 merger of three legacy companies – from N1.506 billion in 2007 to N5 billion and has paid dividends to shareholders seven out of 10 years post-merger.