Yemisi Izuora 

The Consolidated Hallmark Insurance Plc is planning to raise about N500 million from the equity market to boost its operation and drive diversification strategy.

The money will be used to finance the acquisition of a Life Insurance Company, after the deduction of the estimated Issue costs and expenses of N15,715,429 (representing 3.14 per cent of the Issue proceeds), the net issue proceeds of N484,284,571will be utilized.

Consolidated hallmark will raise by way of right issue 1,000,000,000 billion Ordinary Shares of 50 kobo each at 50 kobo per share on the basis of 1 new ordinary share for every 6 ordinary shares of 50 kobo each held as at the close of business on Friday 25th August 2017.
The right will be tradeable on the floor of the Nigerian Stock Exchange during the period of the offer.
Speaking at the signing ceremony in Lagos, the chairman of the company, Mr. Obinna Ekezie, said the essence of the capital raising exercise is to fund the Company’s expansion by strategically taking advantage of emerging opportunities in the insurance industry, especially in the life insurance segment of our market.

This he said will aid in positioning your company as a market leader in the industry, continue on the path of profitability, robust balance sheet, creation of value to its shareholders and overall improvement in its perception in the market thereby making it more competitive
With the rights issue the company will be well positioned to achieve its strategic objectives and to deliver improved returns to all stakeholders, going forward.

On the company’s future plan, he said: “Consolidated Hallmark Insurance Plc is currently undergoing a digital transformation exercise which will enable it position itself strategically. It is believed that it would help the company deliver exceptional returns to shareholders, be profitable and increase its market share as part of a comprehensive 5 Year Strategic Plan currently being implemented. The Company’s 5 year strategic plan is anchored on 12 key initiatives.

“The company has also finalized plans to revamp its agency unit to enable it position appropriately for micro insurance, taking advantage of the volume of sales accruable from the low-income class. Prompt and quality service delivery model will be designed to ensure that all customers are left with a long lasting impression,” he assured.