CIC Insurance Group on Thursday joined the bandwagon of listed companies that have issued profit warnings with the insurer indicating that it profits are set to be at least 25% lower than reported the previous year.
In a notice to shareholders, the company attributed the forecast to poor performance of the stock market has led to reduced returns from equity investments owing to a tough operating environment.
The company also noted viscosity in the property market pointing out it has been tight with limited opportunities to dispose
properties and support in offsetting financials charges.
“CIC Insurance Group PLC remains confident that the Covid –19 mitigation strategies that have been put in place supported by the various transformational initiatives undertaken by the Group and the Subsidiaries, will give business the impetus for sustained growth,” the company said.
Other listed companies that have issued profit warnings include Cooperative Bank, Standard Chartered, Kenya Airways, Absa, Kenya Power all of which were significantly affected by COVID-19.
In the half year ended June 2020, the company reported a Ksh335.5 million loss on account of increased claims which set the company back Ksh5.4 billion.
During the period under review, the company’s balance sheet however expanded to Ksh37.2 billion from Ksh35.3 billion the previous year.
Revenue raked in from gross written premiums fell to Ksh9.3 billion from Ksh9.6 billion.