- CIC Insurance’s gross profit hit KSh 464 million in the first six months of 2022, compared to a pre-tax profit of KSh 337 million posted in a similar period in 2021.
- CIC said the performance was driven by strong growth in the gross written premium and improved performance on the underwriting results
- CIC’s gross written premium grew by 23 per cent to KSh 13.2 billion from KSh 10.7 billion, driven by growth in all its businesses in Kenya and the regional countries
- The company’s total assets increased by 10 per cent from KSh 41 Billion as of 30th June 2021 to KSh 45.8 billion as of 30th June 2022 as investments continued to grow
CIC Insurance’s gross profit hit KSh 464 million in the first six months of 2022, compared to a pre-tax profit of KSh 337 million posted in a similar period in 2021. The performance represents a 38 per cent rise in the company’s gross profit.
CIC said the performance was driven by strong growth in the gross written premium and improved performance on the underwriting results owing to the continued implementation of transformation initiatives.
During the period, CIC’s gross written premium grew by 23 per cent to KSh 13.2 billion from KSh 10.7 billion, driven by growth in all its businesses in Kenya and the regional countries.
The business significantly improved the underwriting results by 64 per cent as the company remained focused on its core insurance business.
Meanwhile, investment income declined by 18 per cent to KSh 901 million from KSh 1.06 billion for the same period last year due to reduced valuations on the equity portfolio.
CIC also noted that fund management fees income grew by 29 per cent to KSh 541 million because of a 19 per cent increase in funds under management to over KSh 106.7 billion.
The company’s total assets increased by 10 per cent from KSh 41 Billion as of 30th June 2021 to KSh 45.8 billion as of 30th June 2022 as investments continued to grow.
What is CIC’s performance in Kenya’s market?
During the period under review, CIC’s performance in Kenya’s market recorded improvement. The company’s gross written premium was up 18 per cent from KSh 6.8 billion the prior year to KSh 8.05 billion reflecting new business wins.
The business, which is CIC’s biggest market, recorded a profit before tax of KSh 220 million compared to a profit of KSh 345 million same period the prior year, owing to increased provisions arising from debt clean-up.
In terms of life assurance in Kenya, gross written premium grew by 30 per cent to KSh 3.64 Billion compared to KSh 2.89 Billion the prior year. The company recorded a profit before tax of KSh 240 million, up from a loss before tax of KSh .270 million same period prior year. The significant improvement was due to improved loss ratios as we focus on controls and pricing of the various products.
Its asset management business recorded an increase in profit before tax from KSh 225 million same period last year to KSh 274 million, mainly because of the growth of assets under management by 19 per cent to KSh 106.7 billion from KSh 89 billion same period last year.
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Outside of Kenya, CIC’s regional businesses continued on a growth trajectory, with gross written premium increasing by 20 per cent in Malawi, 43 per cent in Uganda and 143 per cent in South Sudan. The Companies also continued to support the Group’s bottom line favourably.
Has CIC recorded positive underwriting results?
Going forward, CIC said it continues to implement transformational initiatives aimed at business growth and significant profitability improvement.
Underwriting excellence continues to be the Group’s focus going forward to ensure that all businesses record positive underwriting results.
“The Group continues to review and implement functional structures to support achieving the overall Group objectives. Balance Sheet re-organisation is on course to ensure optimal utilisation of the available resources including disposal of non-core assets such as land for capitalisation of business and investment in better returning assets,” CIC said.
The company said it has also focused on implementing and automating performance based reward systems and processes such as Key Performance Indicators. This is aimed at improving staff engagement and productivity.
