Consolidated Hallmark Holdings Plc secured an operational license for CHI Life Assurance Limited on March 10, 2025, further positioning the Group as a one-stop financial services organization in Nigeria. Eddie Efekoha, chairman of CHI Life and group CEO of the holding company, shares insights into the rationale behind the new subsidiary and plans to grow its market share in the life insurance sector. Modestus Anaesoronye reports.
Consolidated Hallmark Holdings Plc recently achieved a milestone of securing a Life Assurance licence, what does this mean for the Group’s broader vision, and what is your expectation in making this new investment?
Yes, we received with great delight, the operational licence from the industry regulator, the National Insurance Commission (NAICOM), precisely on 10th March 2025. And we are grateful to them for finding us worthy of the licence. For us all at Consolidated Hallmark Holdings Plc, and the subsidiaries, it was indeed a dream come true. We aspired to become a one-stop shop for insurance and other financial services and we are now very well on the verge of attaining that. You would recall that we have since had a micro insurance licence with national coverage of operations. This was, however, limited in scope to a sum assured of N2 million maximum per individual. With this new licence, therefore, this limitation has been removed and our market expanded. I would like to let you know that arrangements are now in top gear for a formal launch of CHI Life in the next couple of weeks.
Life insurance holds a big potential for the insurance industry, but the challenge has been the environment as well as strategy of operating companies, what are you going to do differently to make a mark?
Opportunities abound and remain to be fully tapped, for both operators in Life Assurance business and individuals who are yet to take advantage of the benefits inherent in the service offerings of operators. Of course, beyond the provision of the simple death benefit, which a lot of people are aware of, the products offered helps to build savings for individuals while enabling operators create a pool of funds for long term investment and grow value. CHI Life Assurance has a background. It is coming from a family with a formidable reputation built on professionalism and exceptional service delivery. We are poised to fully leverage on these to grow value for all stakeholders.
Read also: Protecting the people we love with life insurance
With a formidable team at the helm of our new subsidiary, we aim to launch out shortly with unique product offerings. These products have reached an advanced stage of development. We are optimistic of their acceptance by discerning customers and prospects alike, who truly look forward to deriving value through investment-linked products even while alive. Deepening insurance penetration in Nigeria, in the first instance, ensure we rank amongst the top in Africa, so requires a multi-pronged approach in product innovation, financial literacy, and easier accessibility through improvement of distribution channels.
How does the company plan to differentiate its life insurance offerings in a competitive market, especially in terms of customer value, technology, and accessibility?
The market is quite competitive, no doubt, but it remains largely untapped as we are not anywhere near where we should be. Recent data of the 2024 Insurance Industry premium which you are familiar with for instance indicates that of the N1.56 trillion generated, life business component was only N470 billion while non-life accounted for N1.1 trillion. This can be significantly improved upon especially the life component, which provides an avenue for pooling of premium for long-term investments.
The massive investment in technology, which we regularly embark upon as an organisation is geared towards easing accessibility. All our member companies embrace the tool to enhance sales, from our finance company to the health maintenance organisation to the general insurance company and now the full-fledged life assurance subsidiary. With the development of unique product offerings, which is a departure from the generic, deployment of technology and drive towards digital sales, CHI Life is here to make a difference.
Nigeria Insurance Industry Reform Act (NIIRA) 2025 was recently signed into law by President Bola Tinubu, flagging off the new minimum capital requirement for insurance companies. What is your plan for CHI Life Assurance Limited?
The NIIRA 2025 is a good development that has since been awaited in the industry and portends good tidings for all players. The benefits of the Act, if fully explored, are capable of taking the industry to greater heights. The Act raises the minimum capital base of life insurers from N2 billion to N10 billion, while that of general business underwriters was raised from N3 billion to N15 billion. Before the increase, while setting up CHI Life, we have proactively raised well above the prevailing capital at that time with N8 billion fully paid up. At the Group level, our total profit attributable to shareholders was N22.5 billion and we are currently operating with shareholders’ funds of over N34 billion. We can therefore say that we are comfortably on track.
We are however favourably disposed towards further boosting our capacity through measures including but not limited to acquisitions of smaller organisations, details of which shall gradually emerge as the regulator and shareholders approve our plans. Beyond this, the Act also seeks to ensure prompt claims payment, digitization of operations and collaboration at the sub-regional level for underwriting of risks.
We are nearing the last quarter of 2025, as an investor in the Nigerian economy, how would you describe the economy so far, and what is your expectation for the remaining part of the year?
The Nigerian economy in 2025 has shown a welcome measure of resilience and relative stability compared to the turbulence of recent years. Key indicators, particularly the exchange rate have steadied, with the naira trading in the N1, 500–N1,600 band against the U.S. dollar for much of the year. While this is still some distance from the sub N1,000 levels that many businesses would consider ideal, it represents a significant improvement in predictability and provides a more reliable basis for planning and investment decisions.
Inflation, though elevated, has moderated from last year’s highs as the government implements tighter monetary policies and structural reforms. Interest rates remain on the high side, but the clarity of the Central Bank’s direction and the steadying currency have given both local and foreign investors greater confidence. We are also witnessing encouraging signs in sectors such as agriculture, financial services, and technology, which continue to attract investment and create employment despite global headwinds.
From a business and investment standpoint, this relative macro-economic stability is crucial. It allows companies to forecast cash flows, manage costs, and deploy capital with a higher degree of certainty. For long-term investors like us at CHI Life Assurance, this environment supports strategic growth, whether in product development, customer outreach, or expansion of our investment portfolio because it reduces the unpredictability that previously hindered medium- to long-term planning.
Looking ahead to the final quarter of the year, we expect this stability to be sustained, provided current fiscal and monetary policies remain consistent. We are cautiously optimistic that continued reforms in the energy sector, infrastructure development, and targeted social programmes will further support consumer confidence and economic activity.
In summary, while challenges such as inflationary pressures and structural bottlenecks remain, 2025 has so far marked a turning point towards a more predictable and investible Nigerian economy. If the current policy trajectory is maintained, the remainder of the year should consolidate these gains and lay a stronger foundation for inclusive growth in 2026 and beyond.
The CHI Group financial performance in 2024, one year after consolidation was bracing, given the challenges in the business environment, what did you do differently and how do you plan to sustain it in the current year?
True. Our financial performance in 2024 was an all-time high as reported during our Annual General Meeting held recently. Significant growth was recorded in both top lines and bottom lines with a profit of up to 404 percent. These results were achieved through a combination of factors especially the implementation of our Group Strategic Initiatives. The pivots of these are anchored on accelerated innovation, enhanced customer engagement and deeper market penetration. We are geared towards sustaining this, part of the reason we have now also ventured into full life assurance business.
Back to the life business, how do you see the current economic climate such as inflation, interest rates, and employment trends impacting the demand for life insurance products in your target market?
The current economic environment in Nigeria, though challenging, presents unique opportunities for forward-thinking individuals and families to secure their financial future. Inflation has moderated slightly over the past five months, and while interest rates remain relatively high, we expect a gradual softening in the medium term as government policies to stabilise prices begin to take effect. Employment trends are also evolving, with more Nigerians seeking multiple streams of income and exploring ways to protect their wealth.
These dynamics underscore the relevance of life assurance as an essential financial planning tool rather than a discretionary purchase. Life insurance provides stability in uncertain times: it allows individuals to set aside a portion of their earnings to protect their loved ones, create intergenerational wealth, and meet long-term goals. Our products, including endowment plans, child education policies, legacy policy and retirement solutions are designed to help customers preserve value and build financial security regardless of short-term economic fluctuations.
In fact, economic pressures often heighten awareness of the need for protection and disciplined savings. When people realise that inflation erodes the value of idle cash, they look for structured, reliable avenues to safeguard and grow their resources. Life assurance is uniquely positioned to meet that need.
At CHI Life Assurance Limited, we see these conditions as an opportunity to deepen public education and financial literacy. We are committed to engaging more Nigerians, especially young professionals and emerging entrepreneurs, on the importance of early planning and the peace of mind that life assurance brings.
Ultimately, no matter the economic climate, the fundamental need to protect one’s family, plan for retirement, and create a legacy remains constant. With the right awareness and tailored solutions, the demand for life assurance will not only endure, but also continue to grow.
