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Consolidated Hallmark Insurance Bullish on Future Performance

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Mr. Obinna Ekezie, the Chairman, Board of Directors of Consolidated Hallmark Insurance (CHI) Plc, has said the years ahead are indeed bright for the company and its stakeholders because the company would leverage on its continued expansion as a one -stop insurance and other financial services provider through its subsidiaries.

Okezie, who spoke at the annual general meeting (AGM) held Lagos, recently, said CHI Plc would not relent in boosting working capital while awaiting developments in the recapitalisation journey of the insurance industry.

Ekezie said that the local insurance operating environment was characterised by activities of operators geared towards meeting the recapitalisation thresholds set by the industry regulator The National Insurance Commission (NAICOM) the previous year.

According to him, He said that the first phase of the recapitalisation exercise required that operators meet a minimum of 50 per cent of the new requirement by December, 2020 and the balance to be met in September, 2021.

Although the recapitalization exercise is put on hold due to court action, Ekezie said CHI Plc proactively continued with the raising of additional capital, with a successful Rights Issue where 2,032,500,000 shares were offered and fully subscribed notwithstanding the limitations imposed by the pandemic.

“We thank you for your immense support which culminated in the success of the capital raise and shall not relent in taking further steps to boost our working capital as we await further developments on recapitalisation from the industry regulator.

“The next phase of our fund drive shall be conveyed to you, distinguished shareholders, as we take definite steps towards meeting the N10 billion threshold, subject to further developments in the industry,” he said.

Speaking on the performance of the company for the 2020 financial year ended December 30, 2020, Ekezie said that amid challenges in the global and local economy owing to the COVID-19 pandemic among others, the company recorded significant growth in key performance indices.

“With the benefit of hindsight, we are quite optimistic that future operating results would be significantly improved upon as the Macro Economic Environment and Global Outlook presents brighter pictures in the years ahead.

“With business operations now getting back fully to normal and the effects of the global pandemic gradually waning, especially in our local operating environment, we are quite hopeful of further improvement in performance,” he stated.

The chairman said that CHI Plc posted an all-time high gross premium written of N9.77 billion, showing a 12 per cent growth when compared with the N8.69 billion in 2019. Profit after tax increased to N677.98 million from N600.31 million in 2019. Total assets increased by 22 per cent, growing to N14.31 billion from N11.74 billion ached in 2019.

Based on the performance, the directors recommended a dividend of N216.8 million, which translated into two kobo per share.

On his part, Mr. Eddie Efekoha, the Group Managing Director/Chief Executive Officer, CHI Plc, said that the company had achieved 50.7 per cent of the mandated N10 billion thresholds by raising capital to N5.06 billion in November 2020.

“Our successful Rights Issue thus sent a signal of our commitment towards meeting the new requirement, as we achieved 50.7 per cent of the mandated N10 billion thresholds by raising our capital to N5.065billion in November 2020.

“Ahead of the earlier deadline of December 31, 2020 for 50 per cent as a general business insurer.

“Your Company shareholders fund stood at N8.03billion as at end of December, 2020.

“Although the industry recapitalisation programme is currently on hold, NAICOM has continued to adopt other measures and initiatives for the effective regulation of the industry.

“Some of which include the automation of the Annual Returns filing and licensing of more insurance companies to stimulate competition in the market.

“They have also allowed existing operators to establish micro-insurance business as a department: a development that is intended to drive up financial inclusion and increase insurance penetration in Nigeria,” he added.

Looking ahead, Efekoha foresaw an increasing positive contribution of the subsidiaries – Grand Treasurers Limited, Hallmark HMO, and recently CHI Micro-Insurance to the overall results of the group.


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E-Financial

SERAP Gives CBN 48-Hour Ultimatum to Withdraw ATM Fee Hike

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Socio-Economic Rights and Accountability Project (SERAP) has called on the Central Bank of Nigeria (CBN) to immediately revoke its recent increase in Automated Teller Machine (ATM) transaction fees, describing the move as “Patently unlawful, unfair, unreasonable, and unjust.”

SERAP Gives CBN 48-Hour Ultimatum to Withdraw ATM Fee Hike

In an open letter addressed to Olayemi Cardoso, governor, CBN, and dated February 15, 2025, SERAP warned that the fee hike would worsen economic hardship for millions of Nigerians, particularly those at the lower end of the financial spectrum.

The rights group gave the apex bank a 48-hour deadline to reverse the policy or face legal action.

The CBN’s new directive mandated that ATM withdrawals at off-site locations, such as shopping malls, airports, and standalone cash points, will attract an N100 charge per N20,000 withdrawal.

Additionally, a surcharge of up to N500 may apply for transactions conducted at certain locations. The new fees are set to take effect from March 1, 2025.

In its letter, signed by Kolawole Oluwadare, deputy director, SRERAP criticized the policy, arguing that it would disproportionately affect struggling Nigerians while benefiting commercial banks.

“The manifestly unfair increase in ATM transaction fees will hit hardest those at the bottom of the economy and exacerbate the growing poverty in the country,” SERAP stated.

The organization further argued that financial institutions should bear the cost of banking operations, rather than shifting the burden onto customers, particularly those with limited financial means.

SERAP accused the CBN of prioritizing the interests of banks over the welfare of ordinary Nigerians, many of whom already struggle with the high cost of living.

The group pointed out that banks continue to report record-breaking profits while imposing excessive charges on customers.

“CBN policies should not be skewed against poor Nigerians and heavily in favour of banks that continue to declare trillions of naira in profits, mostly at the expense of their customers.

“The increase in ATM transaction fees will inflict misery on Nigerians and contribute to human rights abuses,” the letter read.

SERAP also noted that the policy contradicts President Bola Tinubu’s commitment to tackling poverty in Nigeria.

The rights group argued that the CBN’s action violates multiple legal provisions, including the Nigerian Constitution, the CBN Act, and the Federal Competition and Consumer Protection Act.

SERAP highlighted specific sections of these laws that prohibit unfair business practices and protect consumers from exploitative charges.

According to SERAP, the increase in ATM fees discriminates against low-income Nigerians who may struggle to afford the higher fees, creates a two-tiered financial system that favours the wealthy, contradicts the CBN’s stated mission to promote national economic well-being, and violates international human rights obligations under the United Nations Guiding Principles on Business and Human Rights,

“The CBN has responsibilities under the UNGPs to take effective steps to avoid or mitigate potential human rights harm and to consider ending any charges or transaction fees where severe negative human rights consequences cannot be avoided or mitigated,” SERAP asserted.

“We would be grateful if the recommended measures are taken within 48 hours of the receipt and/or publication of this letter.

“If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” the letter warned.

 

 

 


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FG Seeks Fresh $300m Loan from World Bank for Health Security

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Federal government has engaged the World Bank for a fresh $300m loan to strengthen Nigeria’s health security infrastructure.

FG Seeks Fresh $300m loan from World Bank for Health Security

Information obtained from the World Bank showed that the loan, which is under consideration, will be implemented by the Nigeria Centre for Disease Control (NCDC) with the Federal Ministry of Finance acting as borrower on behalf of the Federal Government.

According to information on the World Bank website, the loan project is expected to “increase regional collaboration and health system capacities to prevent, detect, and respond to health emergencies in the Federal Republic of Nigeria.”

The project is currently in the pipeline stage, with the disclosure date scheduled for February 6, 2025.

The World Bank board is expected to give its approval on July 30, 2025, following necessary assessments. The appraisal is set for April 14, 2025, and implementation will commence in the 2026 fiscal year.

According to a document on the concept of environmental and social review, the Nigeria Health Security Programme aligns with broader government efforts to enhance disease surveillance, diagnostic capabilities, emergency response, and laboratory networks across the 36 states and the Federal Capital Territory.

The programme’s primary objective is to enhance regional collaboration and strengthen Nigeria’s health systems to deal with emergencies. It falls within the World Bank’s investment in health, nutrition, and population sectors across Western and Central Africa.

According to the Environmental and Social Review Summary of the project, HeSP will expand molecular laboratory capacity, upgrade primary healthcare centres, establish emergency operation centres, and construct warehouses.

It will also deploy mobile laboratories and install water, sanitation, and hygiene facilities alongside solar energy systems to support health infrastructure improvements.

Although the total project cost is yet to be determined, the World Bank has committed $300m to the initiative. The funds aim to bolster Nigeria’s pandemic preparedness and improve response mechanisms for public health threats.

The initiative comes as Nigeria strengthens its public health infrastructure following lessons from previous outbreaks, including COVID-19.

If approved, the loan will support the NCDC in improving disease surveillance, diagnostics, emergency response, and laboratory services.

Nigeria has previously secured funding from international financial institutions to boost healthcare resilience, including financing for vaccine procurement, emergency medical services, and infrastructure development.

However, the project, categorised as a high-priority public health intervention, carries substantial environmental and social risks due to potential health, safety, and ecological concerns associated with infrastructure expansion.

Identified risks include increased medical waste, occupational hazards, and heightened energy and water demands.

Social risks range from potential grievances from stakeholders to concerns over land acquisition and implementing health interventions in conflict-prone areas.

 


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CardinalStone Acquires Radix Pension Managers

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Multi-asset management firm CardinalStone Partners Limited has announced the successful acquisition of a majority equity stake in Radix Pension Managers Limited.

 

Following this acquisition, Radix Pension Managers Limited has been rebranded as CardinalStone Pensions Limited, a statement from the firm read over the weekend.

CardinalStone Partners Limited thus solidifies its position as a key player in Nigeria’s financial landscape, leveraging its expertise and resources to enhance CardinalStone Pensions’ operations and service delivery. This transition represents a significant milestone in the firm’s strategic expansion in the pension industry.

CardinalStone Partners Limited, renowned for its comprehensive financial services catering to institutional and high-net-worth clients, boasts a team of seasoned investment professionals with a proven track record of visionary leadership.

On the acquisition, the Group Managing Director of CardinalStone, Michael Nzewi, said, “Our collective strength provides us with the pivotal opportunity to strengthen our position in the pension industry and broaden our range of services for our valued clients.

“By integrating the expertise and resources of all businesses in the CardinalStone Group, we are poised to deliver even greater value and innovative solutions to our customers across the board.”

Despite the change in ownership and brand identity, there will be no disruption to the operations of CardinalStone Pensions.

The firm will continue its business operations as a Pension Fund Administrator, the statement further highlighted.

 


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