The CIC Insurance Group reports half-year Profit Before Tax as Ksh337M
The CIC Group shareholders and investors have a reason to smile after the company reported a Profit Before Tax of Ksh.337 Million for the half year to 30th June compared to Loss Before Tax of Ksh287 Million for the same period last year.
A strong performance driven by growth in all business has seen CIC Group Written Premium grow by 16% to Ksh10.8 Billion from Ksh.9.36 Billion.
However, the group is reprising to more profitable business in South Sudan.
The group’s gains in equity portfolio and unwinding of forex losses from currency translation of foreign subsidiaries has seen its investment income grow by 41% to Ksh.1.6 Billion from Ksh.0.6 Billion in the prior year.
The group’s fund management fees has by 41% to Ksh.400 Million from Ksh. 300 Million as a resultof the increase in funds under management.
The fee income and Re-insurance commission increased 63%, that means growth from Ksh.673 Million to Ksh.1.1 Billion
In regard to the adverse effects of the Covid 19 pandemic, especially on the Life Assurance business with Group Life claims significantly rising, CIC Group has adopted strategies to further support their clients in this situation.
The group reports marginal growth in the property market with no revaluation gains or losses for the current period.
The CIC Group’s Kenyan subsidiaries have a winning business run.
General Insurance Business reports a 16% rise in Gross Written Premium up to Ksh. 6.8 Billion, while CIC Life Assurance has a 9% rise at Ksh.2.9 Billion up from Ksh.2.6 Billion last year.
The CIC Asset Management managed a Profit Before Tax increase from Ksh.130 Million to Ksh.225 Million.
The Group’s regional subsidiaries in Malawi and Uganda have an impressive growth trajectory with Gross Written Premium increasing by 50% and 95%, respectively.
However, CIC South Sudan saw a decrease in GWP due to attrition wrought by reprising to more profitable businesses.
This means the company managed a Profit Before Tax of Ksh.330 Million with strong investment returns registered.