Consolidated Hallmark Holdings Plc (CHH) is forecasting a profit after tax of N26.71 billion for the full year 2026, representing a 691.2% increase from the N3.38 billion reported for 2025, as a sharp improvement in investment performance is expected to drive earnings.
The company’s 2026 earnings forecast jointly signed by its Group Chief Executive Officer, Eddie Efekoha and the Group Chief Financial Officer, Babatunde Daramola, projects profit before tax of N32.90 billion, up 635.8% from N4.47 billion in 2025. Gross revenue is projected at N48.36 billion, representing a 12.1% increase from N43.13 billion recorded in 2025.
The earnings outlook comes against the backdrop of an exceptional first half of the year, during which the group reported N25.28 billion in profit after tax, compared with N1.16 billion in the corresponding period of 2025.
The H1 result was heavily influenced by investment performance. CHH recorded an investment result of N27.33 billion, compared with N1.23 billion a year earlier, representing an increase of about 2,120%. By comparison, its insurance service result declined 20% to N2.61 billion from N3.26 billion.
The group’s net income rose to N27.12 billion from N1.89 billion, while profit before tax climbed to N27.10 billion from N1.76 billion. Tax expense increased to N1.82 billion from N606.30 million, leaving profit after tax at N25.28 billion.
Investment gains dominate H1 earnings
The biggest swing in the first-half accounts came from financial assets measured at fair value through profit or loss.
CHH recorded N24.01 billion in net fair value gains on financial assets at FVTPL, compared with a N2.15 billion loss in the same period of 2025. Interest income also increased to N3.30 billion from N2.23 billion, although other investment income fell to N206.14 million from N718.66 million.
The significance of investment performance is further reflected in the group’s balance sheet. Financial assets stood at N72.68 billion at June 30, 2026, compared with N45.90 billion a year earlier. Of this amount, N47.59 billion was held at fair value through profit or loss. The financial statements state that these investments comprise liquid quoted investments acquired for short-term trading and marked to market daily.
This makes movements in market valuations an important factor in the group’s reported earnings, particularly given the scale of its investment portfolio.
Insurance business records moderate growth
The group’s core insurance operations also expanded during the period, although at a considerably slower pace than its investment business.
Insurance revenue increased to N25.04 billion in H1 2026 from N22.93 billion, representing growth of about 9.2%. Insurance service expenses were broadly flat at N16.96 billion, compared with N16.91 billion in the previous year.
However, net expenses from reinsurance contracts held rose sharply to N5.46 billion from N2.76 billion. Consequently, the insurance service result fell to N2.61 billion from N3.26 billion.
The contrast between the two earnings streams is significant. While the insurance service result declined, the investment result surged, making investment performance the dominant contributor to the group’s first-half earnings.
Forecast implies a much softer second half
With CHH having already generated N25.28 billion in profit after tax in the first six months, its full-year forecast of N26.71 billion implies an additional N1.44 billion of profit after tax in the second half if the forecast is achieved.
Similarly, H1 profit before tax of N27.10 billion compares with the full-year forecast of N32.90 billion, implying approximately N5.80 billion in PBT for the second half.
These figures are arithmetic implications of the reported H1 result and the full-year forecast rather than separate guidance from the company. They indicate that the forecast assumes a significantly lower level of profitability in the second half than the group achieved in the first six months.
The forecast also projects a substantial improvement in fair value performance. Net fair value gain and realised foreign exchange results are expected to produce a combined N23.19 billion net gain, compared with a N1.96 billion net loss in 2025. The gross fair value gain alone is projected at N23.65 billion, compared with a N1.82 billion loss in 2025.
Costs remain elevated
Despite the projected earnings improvement, the forecast shows continued pressure from some cost lines.
Operating expenses are projected at N32.96 billion, slightly below the N33.57 billion recorded in 2025, representing a decline of about 1.8%.
Management expenses, however, are forecast to rise to N4.82 billion from N2.59 billion, an increase of about 86.5%, while finance costs are projected at N876.33 million, up 62.6% from N539.07 million in 2025.
Overall, CHH expects the combination of stronger investment performance and revenue growth to more than offset these cost pressures, with the forecast pointing to a near eightfold increase in full-year profit after tax.
The company’s H1 2026 performance, however, shows that the scale of the earnings improvement is closely tied to investment returns, with the N27.33 billion investment result dwarfing the N2.61 billion insurance service result during the period.