CONSOLIDATED HALLMARK INSURANCE : QUARTER 2 - FINANCIAL STATEMENT FOR 2023

CONSOLIDATED HALLMARK INSURANCE PLC

AND SUBSIDIARY COMPANIES

COMPANY RC:168762

INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2023

CONSOLIDATED HALLMARK INSURANCE PLC AND SUBSIDIARY COMPANIES

REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2023

Contents	Page
Report of the Audit Committee	3
General Information	4
Statement of Significant Accounting Policies	8
Statement of Consolidated Financial Position	35
Statement of Comprehensive Income	36
Statement of Change in Equity	37
Statement of Cash Flows	38
Notes to the Financial Statements	39
Segment information	68
Capital Management Policy	69
Revenue Accounts	71

CHI PLC Q2 2023	Page 1

CONSOLIDATED HALLMARK INSURANCE PLC AND SUBSIDIARY COMPANIES

REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2023

General Information;

The Group

The group comprises of Consolidated Hallmark Insurance Plc (the company) and its subsidiaries - CHI Capital Limited, Hallmark Health Services Limited, CHI Microinsurance Limited and Hallmark Finance Company Limited (formerly Grand Treasurers Limited). CHI Capital Limited has one wholly owned subsidiary 'CHI Support Services Limited'.

Company Information:

Consolidated Hallmark Insurance Plc (formerly Consolidated Risk Insurers Plc) was incorporated on 2 August 1991 and domiciled in Nigeria. The Registered Office Address of the Company is 266 Ikorodu road Lagos (formerly plot 33d Bishop Aboyade Cole Street, Victoria Island, Lagos).

The Company changed its name from Consolidated Risk Insurers Plc to Consolidated Hallmark Insurance Plc following its merger with Hallmark Assurance Plc and The Nigerian General Insurance Company Limited in line with the consolidation reform of the National Insurance Commission (NAICOM) announced in 2005. Consolidated Hallmark Insurance Plc came into effect from 1 March 2007.

These consolidated and separate financial statements have been authorized for issue by the Board of Directors on July 26, 2023.

Principal Activities

Consolidated Hallmark Insurance Plc is a General Business and Special Risks Insurance underwriting firm fully capitalized in line with statutory requirements of the industry regulatory body - National Insurance Commission. The company underwrites Aviation, Oil and Gas, Marine Cargo and Hull and other non - life insurance underwriting including Motor, Fire and Special Perils, Goods-in-transit, Engineering Insurance and General Accident insurance businesses.

The Company identifies prompt claims payment as a means to achieving customer satisfaction and therefore emphasizes prompt claims payment in its operations. The company also invests its available funds in interest bearing and highly liquid instruments to generate adequate returns to meet its claims obligations.

The Company is a public limited company incorporated and domiciled in Nigeria. Its shares are listed on the floor of the Nigerian Stock Exchange and have its registered office at Consolidated Hallmark House, 266, Ikorodu Road, Lagos.

Going concern assessment

These consolidated financial statements have been prepared on a going concern basis. The group has neither intention nor need to reduce substantially its business operations. The management believes that the going concern assumption is appropriate for the group and there are no going concern threats to the operations of the group.

Subsidiaries;

CHI Microinsurance Limited

CHI Microinsurance Limited is a fully owned subsidiary of Consolidated Hallmark Insurance Plc, incorporated in 2016 and Licensed by NAICOM to provide Life microinsurance services. Microinsurance is a financial arrangement to protect low-income people against specific perils in exchange for regular premium payment proportionate to the likelihood and cost of risk involved.

CHI Capital Limited

CHI PLC Q2 2023	Page 2

CONSOLIDATED HALLMARK INSURANCE PLC AND SUBSIDIARY COMPANIES

REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2023

CHI Capital Limited is a fully owned subsidiary of Consolidated Hallmark Insurance Plc. It carries on the business of corporate support services. CHI Capital Limited incorporated CHI Support Services Limited in 2014 with 100% shareholdings.

Hallmark Finance Company Limited

Hallmark Finance Company Limited was an indirect subsidiary of Consolidated Hallmark Insurance up to November 2019 before the Board of CHI Capital limited transferred her holding 100% to the Parent (Consolidated Hallmark Insurance Plc).

Hallmark Finance Company Limited is now a direct subsidiary of the Consolidated Hallmark Insurance Plc. The business of the company is consumer lending, lease financing and other finance company business.

CHI Support Services Limited is a company incorporated as a limited liability company in 2014. CHI Support Services ltd started as an autotrack business but has now focused on providing corporate support services for the Group. CHI Support Services was incorporated in Nigeria.

Hallmark Health Services Ltd

Hallmark Health Services Ltd is a fully owned subsidiary of Consolidated Hallmark Insurance Plc. Incorporated in 2017. It is envisioned to be a leading health insurance company to meet the need for quality health maintenance services providing affordable and lasting health care plan for all Nigerians. Hallmark Health Services Ltd. Is fully accredited by the National Health Insurance Service as a National HMO.

Impact of Covid 19 on Financial Statement

Following the outbreak of COVID-19 pandemic, the Group instituted various measures to preserve the health and well-being of its employees, clients and communities while minimizing the impact of the pandemic on its Businesses in all the jurisdiction where it operates. The Group activated its Business Continuity Plans and came up with various initiatives to prevent business disruptions while ensuring adequate customer service delivery. The Group also came up with palliative measures to ease the difficulty encountered by obligors in identified vulnerable segments and partnered with Government on initiatives aimed at alleviating suffering brought by COVID-19.

In 2021, following medical breakthrough with vaccines for the Covid 19 pandemic, a number of countries, including Nigeria, had relaxed the strict rules around social distancing and other COVID-19 protocol. This has positive impact on our ability to return most of our staff back to the office without necessarily letting go of the flexibility and efficiency that came along with the remote working regime. It also enabled our marketing activities as the nature of our businesses still demand some level of physical engagement with existing and potential customers.

In 2022, most of the general apprehension about COVID 19 had literally disappeared, aside from its resurgence in China towards the third quarter of the year. But, global air travel had resumed in full swing and this impacted positively on our Aviation Insurance class of business. Suffice to mention that COVID 19 had no adverse economic on our business during the period.

The group will continue to closely monitor the national and global developments on the COVID 19 pandemic, and we are confident in our capacity to respond with promptness as may be needed to safeguard the health and safety of our staff and collaborate with all other stakeholders to contain any untoward development in this regard. We will also continue to sustain the Group's Business Continuity Plans, and our ICT capabilities order to take advantage of the flexible work environment that has come to stay as a measure for efficiency and employee work life balance.

CHI PLC Q2 2023	Page 3

CONSOLIDATED HALLMARK INSURANCE PLC AND SUBSIDIARY COMPANIES

REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2023

Securities Trading Policy

In compliance with Rule 17.15 Disclosure of Dealings in Issuers' Shares, Rulebook of the Exchange 2015 (Issuers Rule) Consolidated Hallmark Insurance Plc maintains a Security Trading Policy which guides Directors, Audit Committee members, employees and all individuals categorized as insiders as to their dealing in the Company's securities. The Policy is periodically reviewed by the Board and updated. The Company has made specific inquiries of all its directors and other insiders and is not aware of any infringement of the policy during the period under review.

Free Float Computation

Directors	Direct		Indirect	Total	December 31, 2022	Direct	Indirect	Total	June 30, 2023
			As at December 2022	As at December	As at December	% of Holding	As at 30 June	As at 30 June	As at 30 June 2023	% of Holding
			2022	2022	2023	2023
Issued ShareCapital				10,840,000,000	100%			10,840,000,000	100%
Mr. Obinna Ekezie		-	526,537,893	526,537,893	4.86%	-	526,537,893	526,537,893	4.86%
Mrs. Adebola Odukale			1,151,979,358	1,151,979,358	10.63%		1,151,979,358	1,151,979,358	10.63%
Mr. Eddie Efekoha		1,040,000,000	586,798,809	1,626,798,809	15.01%	1,040,000,000	586,798,809	1,626,798,809	15.01%
Mrs. Ngozi Nkem		277,333,333	659,326,671	936,660,004	8.64%	277,333,333	659,326,671	936,660,004	8.64%
Dr. Layi Fatona			2,818,442,750	2,818,442,750	26.00%		2,818,442,750	2,818,442,750	26.00%
						7,060,418,814	65.13%	1,317,333,333	5,743,085,481	7,060,418,814	65.13%
Directors' Shareholdings (direct and indirect), excludingdirectors with substantialinterests
Mr. Babatunde Daramola		26,834,481		26,834,481	0.25%	26,834,481		26,834,481	0.25%
Mrs. Mary Adeyanju		33,953,777		33,953,777	0.31%	33,953,777		33,953,777	0.31%
Prince Ben Onuora		43,655,598		43,655,598	0.40%	43,655,598		43,655,598	0.40%
						104,443,856	0.96%			104,443,856	0.96%
Other InfluentialShareholdings				-				-
Free Float in Units and Percentage			3,675,137,330	33.90%			3,675,137,330	33.90%
Free Float in Value				1,837,568,665.00				1,837,568,665

1. CONSOLIDATED HALLMARK INSURANCE Plc with a free float percentage of 33.90% as at 30 June 2023, is compliant with The Exchange's free float requirements for companies listed on the Main Board.
2. CONSOLIDATED HALLMARK INSURANCE Plc with a free float value of N1,837,568,665 as at 30 June 2023, is compliant with The Exchange's free float requirements for companies listed on the Main Board.

CHI PLC Q2 2023	Page 4