With a capital base of over N5.065billion capital at its disposal, Consolidated Hallmark Insurance (CHI) Plc has surpassed 50 per cent of the N10 billion capital expected of a general business insurer in the ongoing recapitalisation exercise in the insurance industry. The National Insurance Commission (NAICOM) mandated insurance companies with composite licence to upgrade their capital base from N5 billion to N18 billion; Life insurance firms were required to increase their minimum capital requirement from N2 billion to N8 billion, amounting to 400 per cent increase in their capitalisation.
Similarly, 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. It is in the light of this that CHI says it has met and surpassed the threshold expected of general insurance company by December 2020. Speaking during a webinar tagged: ‘Time-Out With Our Partner’ organised by the company, the Group Managing Director/CEO, Mr. 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 represent.
He equally lauded 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 subscribe 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. He said: “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 its market size, a development, he said, will favour its stakeholders.
The president, Nigerian Council of Registered Insurance Brokers(NCRIB), Mrs. Bola Onigbogi, commended the insurer for being innovative in its products and service delivery, pointing out that the company has never for once, reneged 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.