CIC Insurance Group Plc reported a profit after tax (PAT) of KES 2.85 billion for the full year ending 31st December 2024, a remarkable 98% increase from KES 1.44 billion the insurance firm posted in 2023. This leap translates to an earnings per share (EPS) of KES 1.04, up from KES 0.57 the previous year.
The surge in profitability underscores the company’s ability to navigate a challenging economic landscape, marked by currency depreciation and inflationary pressures in Kenya, while capitalizing on its strategic initiatives.
CIC Group FY2024 Key Highlights.
- Profit After Tax (PAT) nearly doubled to KES 2.85 billion, a 98% increase from the previous year. This translates to an earnings per share (EPS) of KES 1.04, up from KES 0.57 in FY2023.
- CIC Insurance Group’s Revenue grew by 3.7% to KES 26.35 billion, compared to KES 25.41 billion in FY2023, signaling steady demand for CIC’s diverse insurance products.
- Net Investment Result surged by 74% to KES 3.82 billion, bolstered by favorable market conditions and strategic asset management.
- Operating Profit climbed 49.1% to KES 4.57 billion, reflecting operational efficiency and a strong underwriting framework.
- Total Assets expanded by 23.1% to KES 61.94 billion, underscoring its growing financial stability and capacity for future expansion.
- Assets Under Management (AUM) stood at KES 152 billion, highlighting its strength in fund and asset management services.
While the overall financial picture is positive, CIC Insurance Group faced headwinds in its insurance service results, which dropped sharply by 56.4% to KES 343.98 million from KES 788.62 million in FY2023. This decline suggests potential challenges in claims management or pricing pressures in a competitive market. However, the company’s robust investment returns and operational gains more than offset this dip, ensuring a strong bottom line.
Patrick Nyaga, CIC Insurance Group Managing Director and CEO, commented on the results, stating, “Our performance in 2024 reflects the strength of our cooperative heritage and our ability to innovate for our clients. We remain committed to delivering affordable, sustainable solutions while building economic resilience for the communities we serve.”
CIC Insurance Group Dividend Declaration
Despite the stellar profit growth, CIC Insurance Group’s decision to hold its dividend steady at KES 0.13 per share has raised eyebrows among shareholders. With EPS nearly doubling, Analysts at The Trading Room speculate that the company is prioritizing capital retention to fund future growth initiatives, such as expanding its microinsurance portfolio to 25% of policies by 2030 or bolstering its regional footprint.
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