- CIC Insurance Group has reported a 64% rise in its net profit to hit KSh 1.1 billion in the year ended December 2022
- The regional insurer said the performance was driven by the continued execution of their transformational initiatives focusing on customer experience and performance management
- CIC Group’s gross written premium grew by 20% from KSh 19.7 Billion reported in 2021 to KSh 23.7 Billion in 2022. The net earned premiums grew from KSh 14.7 Billion to KSh 17.5 Billion
CIC Insurance Group has reported a net profit of KSh 1.1 billion in the year ended December 2022, marking a growth of 64% from the KSh 668 million reported in 2021.
On Wednesday, March 22, the regional insurer said the performance was driven by the continued execution of their transformational initiatives focusing on customer experience and performance management.
The company also pegged its improved performance to operational efficiency, digital transformation, research and innovation, cost competitiveness and debt management.
During the period under review, CIC Group’s gross written premium grew by 20% from KSh 19.7 Billion reported in 2021 to KSh 23.7 Billion in 2022. The net earned premiums grew from KSh 14.7 Billion to KSh 17.5 Billion.
The Fees and Commission income grew from KSh 2.1 Billion to KSh 2.4 Billion. The operating and other expenses also grew from KSh 4.7 Billion to KSh 5.5 Billion. The Total Assets increased from KSh 41.5 Billion to KSh 46.7 Billion. The Assets Under Management grew from KSh 94 Billion to KSh 127 Billion.
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CIC’s Kenya business
CIC’s General Insurance Business in Kenya recorded a 21% growth in Gross Written Premium to KSh 13.8 Billion in 2022 from KSh 11.4 Billion reported in 2021. Gross profit was tax was up by 35% to KSh 872 Million compared to KSh 644 Million in 2021, attributable to business growth, prudent underwriting and enhanced process efficiency.
Meanwhile, CIC Life Assurance saw a 17% rise in gross Written Premium, from KSh 6.1 Billion reported in 2021 to KSh 7.2 Billion in 2022. The Profit Before Tax grew by 906% to KSh 631 Million from a Loss Before Tax of KSh 79 Million reported in 2021 owing to a strong focus on prudent underwriting and business growth across all the business lines.
In the CIC Asset Management docket, assets Under Management grew by 34% from KSh 94.5 Billion in 2021 to KSh 127 Billion in 2022. The Profit Before Tax increased by 23% to KSh 644 Million compared to KSh 523 Million reported in 2021. The Company continues to lead the Unit trust business with a market share of 40% as at December 2022.
The performance of the Regional Subsidiaries has continued to improve with a contribution of 11% to the gross written premium of the Group during the period.
CIC Uganda Gross written premium grew by 29%, CIC South Sudan by 61%, and CIC Malawi by 6%. All regional subsidiaries were Profitable with a combined contribution of 10% to the Consolidated Profit before tax of the Group.
Going forward, CIC Group said it would continue with implementing the transformation initiatives aimed at the complete turnaround of all the subsidiaries and the growth of the business performance. Improvement of underwriting results remains a key focus for the Group.
Digitisation will be a crucial pillar within the Group’s strategy to provide seamless end–to–end customer experience enabled by emerging technologies. Technology has been driving growth in the company with interventions like self-service portals for brokers, agents and mobile applications, becoming key service points benefiting customers.
To maintain the growth trajectory, CIC will continue investing in technology to strengthen performance and achieve customer retention in the long term. Key among these is the implementation of a robust system for the Life business and the IFRS 17 solution.
“Within the Cooperatives space, our major focus will be the implementation of the survey we have undertaken to better understand and appreciate the needs and priorities of our Cooperatives customers,” the company said.
The company added that the sale of Kiambu land which was launched in November 2022, will be another key initiative within this period.
Other transformational initiatives under implementation, as per our 2021-2025 corporate strategy, include driving research and innovation, debt management, cost management, risk, compliance and governance, including Environmental, Social and Governance (ESG) integration and reporting, among others.
“Looking ahead, we continue to be resilient and confident of growth and strong performance of the Group and an economic turnaround across the various regions. We remain focused on delivering on business growth while progressively building a socially responsible and sustainable business.”