CIC Insurance has reported a Kes 260 million net profit for the half-year period that ended on 30th June 2021, a reversal from a net loss of Kes 335.5 million reported during the same period in 2020. The improvement was attributed to the improved performance in the underwriting business and higher investment income.
The company’s gross written premiums increased by 16% to Kes 10.8 billion from Kes 9.3 billion a year earlier. Its investment income grew to Kes 2.6 billion at the end of June 2021, compared to Kes 1.2 billion recorded at the end of June 2020. Consequently, total expenses in CIC rose to Kes 9.2 billion from Kes 8.3 billion, an 11% jump.
Total assets in the Nairobi exchange-listed company grew to Kes 41 billion in the half-year period from Kes 38.8 billion in June last year. The assets under management increased to Kes 89 billion during the period ended 30th June 2021, a 17 % rise from Kes 74 billion recorded in 2020.
Gross premiums rose to Kes 10.7 billion from kes 9.2 billion, with the Kenyan general insurance business posting a 75 % increase in underwriting profit to Kes 447 million.
CIC insurance generated Kes 879.8 million cash from operating activities in the first half of this year, up from Kes 519.1 million in 2020.
Patrick Nyaga, the Chief Executive Officer said the company is implementing its new strategy of cutting costs, enhancing efficiencies and lifting margins across the region and in the various insurance operations.
CIC Insurance Group is one of the top insurance firms in Kenya. The company appointed Dr Nelson C. Kuria as the new Chairman of the board in July this year, following the retirement of the long-serving Chairman Japheth Magomere who held the position for 14 years.
The insurance company did not declare the payment of an interim dividend.