CIC Insurance Group Plc on Tuesday, March 15 announced its full year results for 2021, bouncing back into profit-making territory after a torrid 2020.
The group declared profit before tax of Ksh960 M***ion for the year 2021 compared to a loss before tax of Kshs80 M***ion recorded in 2020. The insurer attributed the strong performance to operational efficiency as they looked to recover from the effects of Covid-19.
The group’s regional businesses also grew their contribution to the bottom line. Regional subsidiaries contributed 11% of the Group gross written premium. CIC Malawi grew gross written premium by 43% while CIC Uganda grew by 44%.
All the regional subsidiaries were profitable with exception of CIC Uganda.
The group’s gross written premium excluding pension contributions increased to Ksh19.6 b***ion compared to Ksh16.9 b***ion at the end of 2020. Investment income grew significantly by 64% from Ksh1.4 B***ion in 2020 to Ksh2.3 B***ion in 2021 driven by increased investments in various instruments.
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Operating and other expenses for the year stood at Ksh4.7 b***ion up from Ksh4 b***ion the previous year.
Total ***ets increased by 7% to Ksh41.5 b***ion compared to Ksh38.8 b***ion at the end of 2020.
Management fees grew by 35% thanks to a growth of 17% in ***ets under management in the CIC ***et Management business – from Ksh80 b***ion to Ksh94 b***ion
CIC Life ***urance saw gross written premium increase by 24% from Ksh4.9 B***ion to Ksh6.1 B***ion. Owing to the increased claims driven by Covid- 19, the subsidiary recorded a loss before tax of Ksh79 M***ion.
Expressing a positive outlook for the future, CIC highlighted research and development as well as digitization as key planks of its strategy.
“The group continues to review and implement a functional structure to support the achievement of the overall objectives as contained in our Corporate Strategic Plan. The Group’s focus on balance sheet re-organization is on course and aims at optimal utilization of the available resources including disposal of non-core ***ets mainly land and focusing on the core business of the Group.”
“The focus on research and development w*** be key as well as innovation ens****g capacity to expand our product offering and thus enhance product performance and customer experience. Additionally, group-wide operational efficiency focusing on cost optimization, systems uptime and process re-engineering is of critical importance and a focus area by the Group.”
“Digitization is a key priority with optimizing Investment in digital technology, mainly self-service channels, portals, and upgrading our systems with modern technology to support group objectives for faster and accurate reporting, decision-making as well as superior customer experience,” the firm noted in a statement.
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