Listed underwriter CIC insurance group has posted a Sh705 million net profit in the six months to June 2023, a 168 percent rise from the Sh263 million over a similar period last year.
The performance was boosted by a 93 percent growth in insurance service, that saw the firm’s revenue double from Sh446 million in the first half of 2022, to Sh862 million in the first half of 2023.
Operating expenses and non-attributable costs dropped following stringent claims processes which the firm said paid off.
Other expenses declined by three percent from Sh704 million recorded in June 2022 to Sh684 million mainly due to prudent cost management.
In the period under review the group's insurance revenue grew by 20 percent from Sh10.7 Billion in June 2022 to Sh12.9 Billion in June this year.
The Interest revenue also grew by 21 percent from Sh975 Million to Sh1.2 Billion.
The Group's total Assets increased from Kshs 45.3 Billion in December 2022 to Kshs 50.6 Billion a 12% growth while the Assets Under Management grew from Kshs 104 Billion in June 2022 to Kshs 138.5 Billion a 33% growth.
Despite a tough H1 that was marred by investor flights at the bourse CIC’s other investment income rose to Sh118.5 million from 70.6 million in 2022 mostly from the sale of its Kiambu land.
CIC Group Chief Executive Officer Patrick Nyaga, said the firm will continue implementing it’s debt management, cost optimisation, risk, compliance, Environmental, Social and Governance (ESG) and integration.
“Digital transformation will be a crucial pillar within the Group’s strategy with a view to provide seamless end–to–end customer experience enabled by emerging technologies,” said Nyaga.
He said the sale of the Kiambu land launched in November 2022 has progressed well and the firm projects to close phase 1 by close of the year even as it pursues sale of the other phases to optimise the balance sheet.
In the first half of this year, the Nairobi Securities Exchange (NSE) recorded a decline of 26 percent in investor wealth, battered by global capital outflows from emerging and frontier markets to the US and other large economies, which raised interest rates to counter high inflation.
Among those who suffered from the general decline in the stock prices were insurance firms, whose exposure to the market has gone up in recent years as an alternative to property in their investment portfolio distribution.
CIC Group insurance revenue contributed by the Kenya subsidiaries recorded a 21 percent growth in the period.
General Insurance Business revenue grew by 21 percent to Sh7 Billion in June 2023 from Sh6 Billion recorded in 2022 attributable to business growth, prudent underwriting and enhanced process efficiency.
The company’s life assurance arm posted 23 percent revenue growth to Sh4.3 billion due to a strong focus on prudent underwriting and business growth across all the Life business lines.
