By Alex C
Consolidated Hallmark Insurance (CHI) plc has revealed that it is positioned for stronger profitability going forward, having cleared its debt slate with provisions on impairment outstanding premium in excess of N500m. This they said is to have a clean break from the era of debtor’s overhang thus paving the way for future profitability.
Tony Aletor, vice chairman of the company, who disclosed this at the Company’s 19th Annual General Meeting said the company recorded moderate 8 percent growth in the gross premium written from N3.8billion in 2012 to N4.2billion at the end of 2013 financial year.
Aletor disclosed to shareholders that with a provision of N547.7million as impairment charges for the period, and having cleaned the books, future results would be better.
The Company recorded an impressive cash flow position during the period having improved on the N1,857,303,251 recorded during the preceding period with a jump to N2,275,501,790 in its cash and cash equivalents.
Eddie Efekoha, managing director of the Company, said one of the major strategies that has sustained the company’s business is its avowed commitment to prompt and adequate claims settlement. Efekoha disclosed that in spite of the challenging operating environment in 2013, the company’s expenses on claims rose from N846.6m in 2012 to N965.1m, adding that by close of business on 31st December 2013, the company ensured that all fully documented claims for the year were settled.
The Finance Company subsidiary, Grand Treasurers Limited (GTL) remained upbeat in their contributions to the bottom line of the Group.
He also said CHI Support Services Limited, the NCC licensed Vehicle tracking outfit of the company has continued to play a complementary role to ensure the company meets the emerging needs of auto insurance customers who desire added benefits.