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 Million for the year 2021 compared to a loss before tax of Kshs80 Million 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 billion compared to Ksh16.9 billion at the end of 2020. Investment income grew significantly by 64% from Ksh1.4 Billion in 2020 to Ksh2.3 Billion in 2021 driven by increased investments in various instruments.
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Operating and other expenses for the year stood at Ksh4.7 billion up from Ksh4 billion the previous year.
Total assets increased by 7% to Ksh41.5 billion compared to Ksh38.8 billion at the end of 2020.
Management fees grew by 35% thanks to a growth of 17% in assets under management in the CIC Asset Management business – from Ksh80 billion to Ksh94 billion
CIC Life Assurance saw gross written premium increase by 24% from Ksh4.9 Billion to Ksh6.1 Billion. Owing to the increased claims driven by Covid- 19, the subsidiary recorded a loss before tax of Ksh79 Million.
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 assets mainly land and focusing on the core business of the Group.”
“The focus on research and development will be key as well as innovation ensuring 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.
