E-Financial
Consolidated Hallmark Insurance Bullish on Future Performance
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.
E-Financial
Banks Lose N10Bn to Cyber Fraud in 2023’
Stakeholders in the banking and financial ecosystem, yesterday, decried the surge in cyber fraud as Deposit Money Banks (DMBs) lost N10 billion in the second quarter of 2023, representing almost 300 per cent year-on-year compared to the previous year.
At a Mastercard forum convened to tackle fraud and cybersecurity threats in the financial sector, Kari Tukur, vice president, Customer Solutions Centre, East and West Africa at Mastercard, said despite the massive awareness and innovations aimed at combating cybersecurity, the amount lost last year by DBMs was “staggering”.
She said, “With Nigeria’s rapidly growing economic expansion, we are starting to see an increase in the adoption of digital financial services, and the financial landscape is also evolving at an astronomical speed.
“What was staggering for me was in spite of the huge investment around innovation, funding in the cyber space, DBMs lost almost N10bn in Q2 last year, and that was almost 300 per cent growth year-on-year when compared to the previous year.”
She noted that there was the need for collaboration among stakeholders “to combat this rising sophistication of cyber security threat.”
Tukur further stated that Mastercard was deeply committed to cyber security and fraud prevention within the payment industry, disclosing that the company invested $250m “to assist small businesses in addressing their cyber security needs.”
She disclosed that Mastercard payment portals incorporated multiple layers of security such as tokenisation technology, encryption and biometrical to stay ahead of cyber attackers.
She added that, “The sector continues to struggle with the aforementioned challenges, necessitating vigilance, proactive action and comprehensive security strategy, and Mastercard remains committed to providing safe, secure and seamless payment services and experiences for our partners and customers in Nigeria and beyond.”
Celestina Appeal, chairman, Committee of e-Business Industry Heads (CeBIH), stated that the total loss to the banking industry in the last couple of years totalled hundreds of billions of naira while Nigeria’s Consumer Awareness and Financial Enlightenment Initiative had projected a $6trn loss by 2030 to cybercrime within and outside Nigeria.
Represented by Mr Temitope Onibaniyi, secretary of the committee, she stated that the committee was ever-willing to collaborate with industry stakeholders to fight against the perpetrators who “constantly rob banks and other stakeholders in the payments industry of their hard-earned money.”
She said the need for collaboration could not be overemphasised as no individual organisation was immune to cyber security attacks.
E-Financial
Tinubu Rejigs SEC Board, Makes New Appointments
President Bola Tinubu has approved the appointment of some Nigerian professionals to the Board of the Securities and Exchange Commission (SEC).
This is contained in a statement issued by Ajuri Ngelale, special adviser to the President on Media and Publicity.
Tinubu appointed Mr. Mairiga Aliyu Katuka as the Chairman of the board of SEC, while Mr. Emomotimi Agama has been appointed as the Director-General of the board.
The president also appointed Frana Chukwuogor as Executive Commissioner (Legal and Enforcement) of the board.
Tinubu further appointed Mr. Bola Ajomale as the Executive Commissioner (Operations) of the board, while Mrs. Samiya Hassan Usman is the Executive Commissioner (Corporate Services) of the board.
Also appointed into the board are Mr. Lekan Belo as Non-Executive Commissioner and Mr. Kasimu Garba Kurfi as Non-Executive Commissioner.
According to Ngelale, the president anticipated that “all members of the Board of this critical commission will bring to bear their wealth of experience and competence in advancing the commission’s core mandate of developing and regulating a capital market that is dynamic, fair, transparent, and efficient, to bolster investor confidence and contribute immeasurably to the nation’s economic development.”
E-Financial
Ecobank Repays $500m Eurobond
Ecobank has announced the successful repayment of its $500 million five-year Eurobond issued in 2019. According to a statement filed on the Nigerian Exchange Limited (NGX), the Eurobond garnered considerable interest from a diverse range of global investors, including long-term development partners such as FMO and Proparco, who served as anchor investors.
Commenting on this achievement, Ecobank Group Financial Officer, Ayo Adepoju, said: “The bond was listed on the main market of the London Stock Exchange with a coupon rate of 9.5 per cent. The principal and interest repayment, totalling $524 million, was distributed to bondholders through the transaction agent on the bond maturity date of April 18, 2024.
“This inaugural bond we are retiring today was critical in introducing our firm to a wider array of global investors and contributed to the increased visibility of our brand in the capital markets.”
Against the backdrop of challenges posed by the global operating environment, including disruptions in the world supply chain and financial markets, Adepoju highlighted the Group’s resilience. He cited strong liquidity, a robust balance sheet, and a solid leadership team as key factors enabling Ecobank’s success.
He added that the successful repayment of the Eurobond underscores Ecobank’s commitment to financial stability and investor confidence, positioning the firm for continued growth and success in the global market.
- Telecom3 days ago
Imperative of Upholding Nigeria’s Telecoms Lifeline
- News3 days ago
Kaspersky Warns of Data Stealers Hunting for User Credentials
- Telecom3 days ago
What You Need to Know About Multifactor Authentication Fatigue Attacks and How they can be Prevented
- E-Financial3 days ago
Hydrogen, CCHub Partner to Encourage Fintech Startup Success
- Telecom2 days ago
FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions
- Telecom3 days ago
Samsung Returns to Top of The Smartphone Market – Industry tracker
- E-Financial3 days ago
CBN Cuts Banks’ Loan-to-Deposit Ratio to 50 Percent
- E-Financial3 days ago
Access Bank Unveils DiamondXtra Season 16, Dangles N200m, 3 SUVs