Consolidated Hallmark Insurance Plc projects PBT of N336.6 million for Q1 2021

This is according to the firm’s earning forecast sent to the Nigerian Stock Exchange market

Key highlight of the firm’s earnings forecast

• Profit After Tax is projected to decline to N282.7 million,-38% Q-o-Q.
• Gross premium written is expected to decline to N3.85 billion,-49.1% Q-o-Q.
• Net premium income is projected to fall to N2.39 billion,-47.1% Q-o-Q.
• Net claims incurred is projected to decline to N954.5 million, -46.5% Q-o-Q
• Investment income is set to decline to N281.1 million,-57.4% Q-o-Q.
• Underwriting and management expenses Is set to decline to N742.94 million, -51.6% Q-o-Q

Others are:

• Net operating income is projected at N1.71 billion
• Taxation is projected at N53.85 million
• Cash from operating activities is projected at N164.93 million.

Bottom line: The earnings forecast for the firm looks conservative as key financial metrics take a down turn Quarter-on- Quarter. This might be probably due to the ravaging long term effects of the pandemic, which some analysts expects to spiral forward.

With the announcement of a general economic recovery in Q1 2021, the impact of this recovery might not be as instantaneous as some people expect, due to time lag effect, probably influencing the choice of a conservative outlook.