FEATURED STORY

CIC Group HY Profits Plunge 96% on Losses in Life Insurance

Share
CIC Insurance
CIC Insurance Group head office. The insurer on Thursday issued a profit warning.
Share

Life insurance has proven to be a heavy cost on CIC Insurance Group as the listed firm saw profits dip by 96% during the first half of 2019.

Having posted a profit of Ksh537 million at the mid point of last year, the company has now reported a profit of Ksh20.9 million for the half year ended June 2019.

CIC Insurance attributed this dip “mainly because of the loss in our life business occasioned by the adverse group life claims.”

Adverse life groups are insured people who have more knowledge of the circumstances surrounding them over the insurer, and largely include individuals in dangerous jobs or high risk lifestyles.

The listed insurer said they did not expect the same to repeat. “We project a significantly improved performance for our life business in the second half of the year.” CIC said.

Life insurance claims, largely experienced by the firm in Q1, drove claims within H1 to Ksh5 billion from Ksh4.7 billion last year.

CIC’s heavy profits plunge was also occasioned by a lumpy tax charge which impacted its pre-tax profit.

Prior to the taxman taking his dues, the company’s profit stood at Ksh146.8 million, having registered Ksh643.9 million as of June 2018.

The company also said, “General business and CIC Asset Management had a profit before tax of Ksh326 million and Ksh104 million respectively, while the regional countries contributed a profit before tax of Ksh50 million.”

In the future outlook, CIC Insurance said that its newly implemented Premia administration system (that was operational from the start of the year) is now future proof. “We project continued growth in its profitability especially as we introduce more motor assessment centres to contain fraudulent motor claims.”

Written by
Mike Njoroge -

Mike Njoroge is the founder of Daystar Oracle and FootballTriangle. He is passionate about news, religion and sports. He can be reached at: [email protected]

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

WHAT YOU NEED TO KNOW IN POLITICS

FOLLOW US ON SOCIAL MEDIA

Related Articles
Family Bank Profit 2025
BUSINESS

Family Bank Q1 2025 Profit Races Past Ksh1 Billion Mark

Family Bank Group has reported a 15.4% increase in Profit Before Tax...

CIC Insurance partnership with women
BUSINESS

CIC Group, Banking Group Advance Insurance Solutions for Women

CIC Group and Women’s World Banking have entered into a partnership to...

CIC Group partnership
BUSINESS

CIC Crafts a Partnership to Promote Sustainable Cooperatives

More than 250 cooperative leaders have been trained by CIC Insurance Group...

Motor insurance sector
SMART MONEY

Digital Migration in Kenya’s Evolving Motor Insurance

The digital migration in Kenya's motor insurance industry can be mostly attributed...