By Dhahabu Writer
The CIC Insurance Group has registered a 4.4 per cent net profits growth to stand at Sh1.13 billion despite tough economic times that saw the industry experience lukewarm uptake in policies.
The performance was attributed to major strategic decisions implemented by the firm with the rebranding as the most prominent and forging healthy relationships with customers and shareholders.
“It was a remarkable but also very challenging year for us as well as the competition but despite multiple challenges, CIC Group managed to register fairly good results,”
said the CIC chairman, Japheth Magomere, during the annual investors’ forum on Friday.
“I am happy to say that our current strategy is already beginning to bear fruit. Among the major exercises that we undertook was the realignment of our medical business, where we are pricing schemes based on claims experience and benefits sought.”
The gross written premium in 2015 was Sh11.4 billion down from Sh13.7 billion in 2014 largely because of CIC’s new strategy on Medical Business and Group Life where emphasis is now placed on profitability of the various schemes.
Despite the slowdown, Mr. Magomere said that the company’s new path will impact positively on its bottom line.
“Although this translates to a 16.6 per cent decline, we are confident that the current strategies will provide steady and profitable growth going forward,” he said.
Mr. Magomere reiterated that CIC will continue to apply stringent measures in non-performing business lines and focus its efforts on identifying business opportunities that have potential in driving profitable growth.
He said that opportunities for growth in the market are vast, owing to the low insurance penetration rate that currently stands at about three per cent. To grow the penetration levels the company is developing insurance products that best address the needs of the market.
Group Chief Executive, Tom Gitogo, said the company was revisiting its existing products to align them with the ever changing customer needs.
Mr. Gitogo stated that the company was deliberately focusing on lines of business that have a significant growth potential namely pension and ordinary life.
“We have taken the challenge of raising awareness on insurance as an integral part of sound financial planning,” said Mr Gitogo.
He said that the insurance sector was an important contributor to the growth of the economy stating that when people gain the right information on insurance they will be empowered to plan for their future.
In a bid to further diversify its revenue streams, Mr Gitogo affirmed that the company was looking to start property development on its 200 acres in Kiambu in the second half of this year.
“CIC will continue to do this, to help people fully understand and appreciate the role of insurance and work together with other stakeholders to improve lives and our economy,” he said.