The results have placed the company again on the path of
profitability, a trend which was only broken briefly during the
2013 Financial Year when significant provision was made for
impairment charges. It is good to know that the temporal set
back has now been reversed with these results.
Distinguished shareholders, we have remained firmly committed
to the growth in shareholder value over the years. Payment of
dividend was being made, although not yearly as envisaged.
We are unable to effect payment from the results of the 2014
operation since we have only just bounced back to profitability.
Our profits, as indicated in the details of the accounts are being
reinvested in the business.
However, I am pleased to inform you that the Unaudited Financial
Statements of your company for the half year ended 30th June,
2015 is indicative of the improved health in our finances. Our
Profit before Tax for the period currently stands at N 469,860,599
with Retained Earnings of N148,015,245.
It is hoped that this trend will be sustained for the rest of the year,
and on the account of that, the board has decided to pay an
interim dividend of N120 million upon approval.
Last year, we informed you of the resignation of Dr Layi Fatona
from the board effective 23rd of June 2014. However, following
subsequent engagements, I am pleased to inform you that Dr
Fatona has returned to the board to further enrich your company
with his wealth of experience.
The future economic outlook of the country will be quite
challenging, against the backdrop of falling crude oil prices and
fall in the value of the Naira. However, distinguished
Stakeholders, the future of the insurance industry remains very
bright giving the existing low penetration rate.
Your company will take full advantage of technology to drive the
retail segment of the insurance market. There are also plans in
place to partner with Nigerian Banks to drive the Bancassurance
model for which the Central Bank of Nigeria recently issued a
guideline. We will continue to service our clients with our prompt
Dividend Payment
Changes in the composition of the Board
Future Outlook
claims payment culture and remain a partner of choice to the
insurance broker community.
We are quite hopeful that the new administrations at the federal
and various state levels will adopt policies favourable to the
growth of the industry.
Once again, permit me to thank you all, dear Shareholders, on
behalf of my colleagues on the Board. You have entrusted us
with the sacred mandate to pilot affairs of the company over the
years and you have continued to stand solidly behind us.
I wish to also thank the management and entire staff who have
remained resilient in spite of the challenging operating
environment. To you, our partners - insurance brokers, agents
and customers, I say THANK YOU for your trust and confidence
in our ability to deliver on every promise we have made to you.
Above all, I wish to end this address by expressing my immense
gratitude to Almighty God for His continued guidance which has
ensured the Consolidated Hallmark Insurance brand remains a
going concern.
To Him Be All The Glory.
Ugo (Dr.) Obi Ralph Ekezie
Chairman, Board of Directors
August, 2015.
Appreciation
Consolidated Hallmark Insurance Plc
Mr. Eddie Efekoha
MD/CEO
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2014 Annual Report + Accounts
We have continued to emphasize staff
training and development that cuts
across all strata of the organisation. Top
management staff participated in
various management programmes
organized by the Lagos Business School
and other notable organisations during
the year.
020
2014 Annual Report + Accounts
Performance
From the desk of the Managing Director/CEO
Consolidated Hallmark Insurance Plc
DISTINGUISHED SHAREHOLDERS,
Fellow Members of the Board,
Ladies and Gentlemen,
I welcome you all to the 20th Annual General Meeting of your
company. This year, I am particularly delighted that we are
gathered, after very successful general elections that culminated
in the inauguration of new officials to pilot affairs at the federal
and some state government levels. Congratulations.
We have indeed come a long way as a going concern. Efforts have
been made over the years to ensure your company remains
profitable and consistently yield positive returns to all
stakeholders. This was done consistently until the break during the
2013 Financial Year when compliance with regulatory
requirements led to the provision of significant proportion of our
earnings for impairment charges.
Like I promised you, distinguished shareholders during the Annual
General Meeting at Uyo in 2014, the loss situation that resulted
from the foregoing was only a temporal setback in our profitability
streak, as the results being presented today show we have fully
bounced back on track.
Our 2014 Financial Year results do not appear as robust as we
expected since your company, like others in the insurance sector
and other players in financial services operated once again under
very challenging economic conditions.
The power sector reforms that heralded transfer of ownership to
the private sector, beginning with the Distribution Companies
(Discos) came with much hope for a reduction in expenditure on
energy in 2014. However, not much progress was recorded as we
continued to expend a large chunk of resources to generate our
own energy.
Also, the devaluation of the local currency which moved the
official band to N168 to $1 shot up the rates close to the N200 to
$1 mark during the year.
This impacted heavily on our expenses as practically all partners
adjusted their pricing templates to reflect the new realities.
However, it is pertinent to mention that in spite of the difficult
operating terrain, some positive developments are occurring in
our industry.
021
2014 Annual Report + Accounts
Consolidated Hallmark Insurance Plc Performance
INSURANCE INDUSTRY DEVELOPMENTS:
The regulatory environment in the Nigerian Insurance market
helped in no small measure, as envisaged, to minimize the
incidence of outstanding premium. Enforcement of the "No
Premium, No Cover" provision which commenced in earnest in
2013 was intensified during the year, hence there has been a
remarkable improvement in cash flow.
We are happy to report also that conflicts with clients over
periodic statement of account positions have been reduced to the
barest minimum, and we are confident that reconciliations shall
be purely on details and not outstanding premium.
The industry regulator- National Insurance Commission
(NAICOM) has also continued to ensure strict compliance with
the Risk based supervision model. This, the regulator
commenced with the critical review of the management,
structures and processes of the various companies.
The approach considers each of the risks that companies face and
through a structured process, identifies the risks that are most
critical to the financial viability of the institution. This is a sharp
migration by NAICOM from the previous compliance-based
supervision model.
Compliance with the International Financial Reporting
Standards (IFRS), by operators improved significantly with your
company consistently emerging among the first to obtain
approval of accounts from the regulator.
Though the enforcement of the compulsory insurance classes
under NAICOM's Market Development and Restructuring
Initiative (MDRI) was not very successful, the regulator is
unrelenting as it collaborated with the Federal Ministry of
Finance to roll out plans for developing the industry. It is our
fervent hope that the new government will implement the
reforms.
The industry umbrella association, the Nigerian Insurers
Association has also improved on the database, beginning with
motor insurance where its Nigerian Insurance Industry Data
Base (NIID) has captured over 3 million genuinely insured
vehicles nationwide at the last count. Efforts geared at extending
the database to other classes of insurance led recently to the
inclusion of marine cargo insurance. Meanwhile, the law
enforcement agencies are being equipped by the association
with relevant electronic devices to ensure that the issuance of
fake insurance certificates is reduced to the barest minimum.
Your company has continued to re-strategize to ensure the best
returns to all stakeholders. Towards this end, its claims payment
policy remains one to beat in the entire industry as our belief that
satisfied customers will continue to spread the message of
prompt service based on their experience.
The Consolidated Hallmark Insurance brand has grown to occupy
its pride of place in the financial services landscape hence
cannot ignore the evolving trend of e-commerce. We are indeed
poised to drive the retail end of the market through the use of
technology. In this regard, your company is currently working
towards the deployment of various e-business applications that
will bring our services within the reach of our clients anywhere
they may be globally.
We blazed the trail in online marketing of insurance with our
launch of the Motor Third Party portal in 2008. Other companies
have now followed suit.
PROSPECTS:
From the desk of the Managing Director/CEO
STAFF TRAINING & PRODUCTIVITY
APPRECIATION
The company prides itself in the skills and expertise of its staff,
hence, quality training programmes are put in place to enhance
their competences and keep them abreast of global realities.
Some of these trainings are held off-shore, while in-house
engagements are arranged in a way that ensures no staff is left
out.
Efforts were geared towards customer service training for all
categories of staff in line with our vision to ensure optimal service
delivery to our clients.
Your company also takes advantage of training opportunities
packaged by industry bodies including the Chartered Insurance
Institute of Nigeria, CIIN, the Nigerian Insurers Association,
NIA, and the African Insurance Organisation AIO.
Productivity of staff is constantly measured through our
Appraisal System that has been tested for over three years. It is
currently being automated to make it more scientific, relevant
and in tune with best practice.
Support for our business has been quite tremendous from all our
customers, especially the insurance brokers and agents. I wish to
sincerely thank them all for their faith is us. We make a
commitment to continue to deliver on our promises. We shall not
forget our corporate partners and individual clients whose
contributions are not in any way trivialized.
To the staff and management team, I cannot thank you enough as
this, like in previous years has been the result of good team
022
2014 Annual Report + Accounts
Performance Consolidated Hallmark Insurance Plc
CORPORATE SOCIAL RESPONSIBILITY
Due attention has continually been given to our Corporate Social
Responsibility initiatives which is geared towards welfare for the
less priviledged in our immediate environment and also support
for the development of research within the industry.
The Annual Essay Competition instituted by the company to
engender research in higher institutions of learning offering
insurance has continued to draw applause beyond the industry
with some of the winners already in the company's employment.
The papers presented are made available to the public through
the news media, which creates an avenue for further discussion
and value derived for the industry in terms of policy formulation.
We have also kept the faith in provision of succor to motherless
babies in orphanage homes through donation of foodstuff and
provisions to the Hearts of Gold Hospice in Surulere, Lagos.
efforts. Let us keep up the spirit in the unshaken belief that God
in His Infinite mercies will continue to crown our efforts with
success.
My special appreciation also goes to the Chairman, and
members of the board who, in spite of all the challenges have
continued to believe in the Consolidated Hallmark Insurance
goals.
We shall surely attain the lofty heights we desire by the
Special Grace of God.
Thank you.
Eddie Efekoha
Managing Director/CEO
August, 2015
HaFrom the desk of the Managing Director/CEO
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