Consolidated Hallmark Insurance, (CHI) Plc, has confirmed raising over N5.065 billion capital which has apparently surpassed 50 per cent of the N10 billion capitalisation expected of a general business insurer in the ongoing recapitalisation exercise in the insurance industry.
Speaking during a ‘Time-Out With Our Partner’, the company’s group managing director/CEO, Eddie Efekoha, applauded the brokers who have been doing businesses with the company over the years, promising that, the insurer will not disappoint them as well as the clients they represents.
He also commended shareholders, customers and other stakeholders of the company who have stood by it during tough and better times, stating that, the company has consistently rewarded shareholders with returns on their investments, promising that, this would even be improved upon post recapitalisation exercise.
Although, he did not subscribed to using Paid-up capital as the definition of Capital under the current recapitlisation exercise by NAICOM, he stressed that, the company will continue to be a major player in insurance service space post recapitlisation exercise.
“We will recapitalise in a manner that doesn’t affect CHI or its Stakeholders. We will do it in record time. Already, we have met the N5 billion capital by December 2020. The process for the next phase has started, ” he pointed out.
He added that the underwriting firm will not go into merger because it needs funds, but can go into merger discussion if it will increase it market size, a development, he said, will favour its stakeholders.
The president, Nigerian Council of Registered Of Registered Insurance Brokers(NCRIB), Mrs. Bola Onigbogi, applauded the insurer for being innovative in its products and service delivery, pointing out, that the company has never for once, renege on its promises.
While urging the company to always strive to be better, he charged the underwriter to continue to meet its claims obligations just as it has always been doing.
Similarly, the head, marketing, CHI HMO, Mr. Olusegun Tutoyi, said, the Health Management Organisation(HMO) has a national license, meaning, it can operate across the country, urging, people to patronise the company for access to quality healthcare services, promising that, the services are internationally competitive.
Oriental News Nigeria reports that Insurance companies are in a hot race to raise new equity capital to meet new minimum capital requirements for various insurance functions as directed by the National Insurance Commission,NAICOM.
The NAICOM. NAICOM had in May 2019 released new capital requirements for insurance businesses with a 13-month compliance period for operators to shore up their minimum capital base to the required level.
The minimum paid-up share capital of a life insurance company was increased from N2 billion to N8 billion, non-life insurance from N3 billion to N10 billion, composite insurance from N5 billion to N18 billion while re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.
General insurance companies are to raise their capital base to N10 billion from N3 billion , even as Reinsurance Firms will now need N20 billion capital base to operate Reinsurance business in the country.
They are expected to have fully increased their capital to the new threshold by September, 2021, while operators are expected to have realised 50 per cent of their capital by December, 2020.