CIC Insurance Group has recorded a profit before tax of Ksh2 billion for the year ended December 2022 compared to the profit before tax of Ksh960 Million recorded in 2021 representing a 112 percent growth.
The company stated that the performance was driven by their focus on customer experience, performance management, operational efficiency, digital transformation, research and innovation, cost competitiveness and debt management among others.
“The Group will continue with the implementation of the transformation initiatives aimed at complete turnaround of all the subsidiaries and growth of the business performance. Improvement of underwriting results remains a key focus for the Group”, said a statement from the company.
The Group’s gross written premium grew by 20 percent from Ksh19.7 billion reported in 2021 to Ksh23.7 Billion in 2022.
Profit After Tax grew by 64 percent to Ksh1.1 billion in 2022 compared to Ksh668 million reported in 2021.
The net earned premiums grew from Ksh14.7 billion to Ksh17.5 billion.
The Fees and Commission income grew from Ksh2.1 billion to Ksh2.4 billion.
The operating and other expenses also grew from Ksh4.7 billion to Ksh5.5 billion.
The Total Assets increased from Ksh41.5 billion to Kshs46.7 billion.
The Assets Under Management grew from Ksh94 billion to Ksh127 billion.
Kenyan subsidiaries
Its Kenya subsidiaries also recorded growth. On General Insurance Business, the Gross Written Premium grew to Ksh13.8 billion in 2022 from Ksh11.4 billion in reported in 2021. Profit Before tax was up by 35 percent to Ksh872 million compared to Ksh644 million in 2021 attributable to business growth, prudent underwriting and enhanced process efficiency.
On the CIC Life Assurance the Gross Written Premium grew from Ksh6.1 billion reported in 2021 to Ksh7.2 billion in 2022. The Profit Before Tax grew by 906 percent to Ksh631 million from a Loss Before Tax of Ksh79 million reported in 2021 owing to strong focus on prudent underwriting and business growth across all the business lines.
On the CIC Asset Management, Assets Under Management grew by more than a third from Ksh94.5 billion in 2021 to Ksh127 billion in 2022. The Profit Before Tax increased to Ksh644 million compared to Ksh523 million reported in 2021. The Company continues to lead the Unit trust business with a market share of 40 percent as at December 2022.
Regional Subsidiaries
The performance of the Regional Subsidiaries has continued to improve with a contribution of 11 percent to the gross written premium of the Group during the period.
CIC Uganda Gross written premium grew by 29 percent while CIC South Sudan grew by 61 percent and CIC Malawi grew by 6 percent.
All regional subsidiaries were Profitable with a combined contribution of 10 percent to the Consolidated Profit before tax of the Group.
Outlook
“Digitization 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”, the company said.
Technology has been driving growth in the company with interventions like self- service portals for brokers, agents and mobile applications becoming key service points benefiting customers.
The company noted that the sale of Kiambu land which was launched in November 2022 will be another key initiative within this period.
