NAIROBI ,JULY 30, 2018 ― CIC Insurance Group profit for the period ended June 30, grew 54.4 per cent buoyed by increased premiums at the underwriter’s portfolio.
Profit for the period(after tax) closed at Ksh537.1 million up from Ksh347.9 million the same period last year, despite a notable jump in expenditure.
The growth in profit reflects the jump in the value of gross written premiums which rose 17.1 per cent to Ksh8.9 billion up from 7.6 billion last year, as the group continues to leverage on diversification into life and pension plans in the wake of increasing competition in the market.
Net earned premiums rose 20.3 per cent to close the six months at Ksh7.1 billion up from Ksh5.9 billion registered in a corresponding period in 2017.
The group registered a total income of Ksh8.7 billion up from 7.9billion last year, a 10.1 per cent jump.
An increase in net claims and policy holder’s benefits combined with operating and other expenses however pushed the underwriter’s total expenditure up by 8.5 per cent to Ksh7.7 billion from Ksh7.1 billion.
“Claims incurred increased 15 per cent in line with business growth from Ksh4.1 billion to Ksh4.7 billion. Operating expenses remained stable,” the Group reported in its unaudited results for the period June 30, 2018.
The value of total assets increased by 7.5 per cent to Ksh32.8 billion up from Ksh30.5 billion the same period last year.
Net assets (minus liabilities) however closed the period at Ksh7.5 billion, a slight drop from Ksh7.6 billion last year.
The cost of investigation at the group significantly dropped during the period from Ksh2.5 billion last year to Ksh726.5 million.
The Group which has been in the Kenyan insurance space for more than three decades generated Ksh2.3 billion from its operating activities, up from Ksh2.1 billion generated in the same period last year.
“The group has registered commendable growth during the period, with key focus areas being growth and diversification of revenue streams, innovation and information technology,” the group reported in its half year statement by CEO Tom Gitogo and Chairman Japheth Magomere.
“CIC Life has continued to leverage on diversification into ordinary life and pension while the motor assessment centre has resulted in lower motor claims costs for CIC General,” the management said.
The half-year results predicts a good performance this year compared to financial year 2017, when the Nairobi Securities Exchange listed underwriter recorded a Ksh478.47 million net profit for the period to December 31. This was up from Ksh188.19 million the previous year.
