Consolidated Hallmark Holdings Plc (CHH) experienced a remarkable financial turnaround in 2024, posting significant growth across key performance indicators. The company’s Profit Before Tax soared by an impressive 404%, reaching N23.2 billion compared to N4.7 billion in 2023. This surge in profitability translated into a substantial increase in total profit attributable to stakeholders, which climbed to N22.58 billion from N3.8 billion in the previous year. This robust financial performance was unveiled during the company’s second Annual General Meeting, marking a successful first year of operations following its restructuring into a HoldCo. The company attributed this success to strategic investments, particularly in the oil and gas sector, which matured during the year, yielding significant returns after years of careful nurturing. This outcome validated CHH’s commitment to long-term strategic positioning and its ability to weather economic uncertainties.
The impressive growth in profitability was mirrored by a significant expansion in the company’s asset base. Total assets witnessed a 117% increase, rising from N26.2 billion in 2023 to N56.9 billion in 2024. This substantial growth underscores the effectiveness of the company’s investment strategies and its ability to capitalize on emerging opportunities within the Nigerian economy. Furthermore, insurance revenue, a core component of CHH’s business, experienced a remarkable surge, reaching N29.42 billion in 2024 compared to N15.7 billion in the preceding year. This significant increase in insurance revenue signifies the company’s growing market share and its ability to attract and retain customers within a competitive landscape. This overall financial performance paints a picture of a company on a strong growth trajectory, effectively navigating the complexities of the Nigerian economy.
The company’s leadership acknowledged the challenging economic environment that characterized the 2024 financial year. Shuaibu Idris, the Group Chairman, described the year as a blend of “aspirations and apprehension” due to government reforms, volatility in the oil and gas sector, and the impact of forex liberalization policies. Despite these challenges, CHH managed to achieve remarkable results, highlighting the resilience and adaptability of its business model. The chairman emphasized the strategic importance of long-term investments, particularly in the oil and gas sector, which proved to be a key driver of the company’s success. He further expressed optimism about future prospects, citing the company’s newly acquired life insurance license as a gateway to accessing long-term investment funds. This new avenue is expected to further fuel CHH’s growth by enabling it to invest in critical sectors of the Nigerian economy and generate substantial returns.
Looking ahead, CHH’s leadership expressed confidence in the company’s ability to leverage the numerous opportunities present in the Nigerian economy. Idris highlighted the potential for continued growth and expansion, emphasizing the importance of effective risk management in navigating the dynamic market landscape. He anticipated that the relative stability in the exchange rate and a projected slowdown in inflation in 2025 would create a more favorable economic environment, leading to increased disposable income for consumers. This, in turn, is expected to boost demand for insurance and other financial services, further benefiting CHH’s business. The chairman’s optimistic outlook reflects the company’s confidence in its strategic direction and its ability to capitalize on emerging market trends.
Eddie Efekoha, the Group Chief Executive Officer, echoed the chairman’s sentiments, describing 2024 as a year of “significant strides and progress on multiple fronts.” He characterized the company’s inaugural year performance as “very good,” reflecting the successful implementation of its strategic initiatives. Efekoha revealed that CHH had embarked on a comprehensive three-year plan, developed in collaboration with PwC, aimed at repositioning the group for accelerated innovation, enhanced customer engagement, and deeper market penetration. This plan is designed to build a strong foundation for long-term value creation and sustainable profitability. Key elements of the plan include portfolio value maximization, ecosystem orchestration, portfolio diversification and expansion, strengthening investor relations, and fostering shared capabilities and efficient strategy execution across all operations.
Central to CHH’s growth strategy is a focus on digital transformation. Recognizing the increasing importance of technology in the financial services industry, the company has accelerated its digital transformation journey. This involves upgrading core systems, introducing customer-facing innovations, and embedding technology at the heart of its operations. These efforts are aimed at enhancing agility, expanding digital access, and strengthening the company’s competitive edge in the evolving market landscape. By embracing digital transformation, CHH aims to future-proof its business and position itself for continued success in the years to come. The company’s commitment to innovation and its focus on customer engagement underscore its dedication to delivering long-term value to stakeholders.
