CIC Insurance Group Plc is pleased to report a Profit Before Tax of Kshs. 464 Million for half year to 30th June 2022 compared to Profit Before Tax of Kshs. 337 Million for the six months period ended 30th June 2021, representing a 38% increase.
The strong performance was driven by strong growth on the gross written premium and improved performance on the underwriting results owing to the continued implementation of transformation initiatives.
Key Highlights
• The Group’s gross written premium grew by 23%to Kshs. 13.2 Billion from Kshs. 10.7 Billion driven by growth in all our businesses in Kenya and the regional countries.
• The business significantly improved the underwriting results by 64% as we focused on our core business of Insurance.
• Investment income declined by 18% to Kshs. 901 Million from Kshs. 1.06 Billion for the same period last year due to reduced valuations on the equity portfolio.
• Fund management fees income grew by 29% to Kshs. 541 million as a result of 19% increase in funds under management to over Kshs. 106.7 Billion.
• Total assets increased by 10% from Kshs. 41 Billion as at 30th June 2021 to Kshs. 45.8 Billion as at 30th June 2022 as investments continued to grow.
Kenya Subsidiaries
• General Insurance Business. Gross written premium was up 18% from Kshs. 6.8 Billion prior year to Kshs. 8.05 Billion reflecting new business wins. The business recorded a profit before tax of Kshs. 220 million compared to a profit of Kshs. 345 million same period the prior year, owing to an increase in provisions arising from debt clean-up.
• CIC Life Assurance. Gross written premium grew by 30% to Kshs. 3.64 Billion compared to Kshs. 2.89 Billion prior year. The company recorded a profit before tax of Kshs. 240 million up from a loss before tax of Kshs.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.
• CIC Asset Management. Profit before tax increased from Kshs.225 million same period last year to Kshs. 274 million mainly as a result of growth of Assets under Management by 19% to Kshs.106.7 Billion from Kshs. 89 Billion same period last year.
Regional Subsidiaries
• Our regional businesses continued on a growth trajectory with gross written premium increasing by 20% in Malawi, 43% in Uganda and 143% in South Sudan. The Companies also continued to support the Group’s bottom line favorably.
Outlook
• The Group continues to implement transformational initiatives aimed at the growth of the business and significant improvement in profitability. 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 achievement of the overall Group objectives. Balance Sheet re-organization is on course to ensure optimal utilization of the available resources including disposal of non-core assets such as land for capitalization of business and investment in better returning assets.
• Digitization- focusing on optimizing investment in digital technology mainly self-service channels, portals and digital products. Enhanced operational efficiency by upgrading and implementing key systems for better customer experience, convenience and decision making.
• The Group has also focused on the implementation and automation of performance based reward systems and processes such as Key Performance Indicators. This is aimed at improving staff engagement and productivity.
Conclusion
• With the transformation initiatives in place some of which have been highlighted above, the CIC Insurance Group Plc is confident of continued growth and profitability in the medium to long term.
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