In exercise of its statutory powers and regulatory functions, NAICOM had on May 20, announced an increase in the minimum capital for insurance companies in Nigeria.
The review is to take effect by June 30, 2020.
According to the announcement, the new minimum capital required for general business, which is where they operate, was increased from N3 billion to N10 billion.
In a disclosure signed by the Managing Director of Consolidated Hallmark Insurance, Eddie Efekoha, the company is said to presently have a capital base of approximately N6.1 billion based on its last audited financial report as of December 31, 2018.
It also announced the plans of the company to get the additional N3.9 billion in a short period so as to meet up with the new capital threshold of N10 billion.
The firm sought for the support of its stakeholders to realise the new target, adding that its first line of action will be to issue additional shares by way of a rights issue.
This, it said, will give existing shareholders the opportunity to increase their stakes in the company and enjoy the benefit of a lower offer price than that of a public offer.
The firm also said it has, in the recent past, made a number of positive strides.
“The company recorded a 19 per cent growth in its gross premium income in 2018. “It achieved a 330 per cent growth in its income line from the retail segment of its portfolio, a result of the implementation of its retail expansion strategy”, it said.