CIC Insurance Group Plc has issued an alert that its net profit for the year ended 31st December 2025 is expected to be at least 25% lower than the profit reported for a similar period in 2024.
CIC Group joins a long list of publicly quoted companies that are already issued profit warnings including Kenya Airways, Standard Chartered Bank Kenya, Kapchorua and Williamson Tea, Centum Investments, Liberty Kenya Holdings, TPS Eastern Africa (Serena Hotels) Shri Krishana Overseas, Umeme Limited and WPP ScanGroup.
While a tough business environment is the reason most of these firms are expecting declined earnings, Standard Chartered Bank Kenya’s case involves a huge compensation award in a pensions dispute between the lender and its former employers. WPP ScanGroup has been in the red since a boardroom battle erupted that saw its entire executive wing sent packing, the matter now within the corridors of justice.
A stronger Kenya Shilling exchange rate especially against the US Dollar, is squeezing the margins of major exporters, especially in the agricultural and hospitality industry, where the likes of Kapchorua, Williamson Tea and Serena Group, sits.
CIC Insurance Group: Reasons for the Profit Alert
In a statement, the CIC Group’s board said the anticipated decline in profitability is driven by non-recurrence of a significant one-off gain recognised in the 2024 financials and elevated claims.
In 2024 financial year, the CIC Group recognised a one-off gain of KSh 1 billion arising from re-evaluation of its Kiambu land. In addition, the Group experienced elevated claims during the period which reflects normal volatility within the insurance cycle and remains within expectations.
CIC has also had a weaker first half marked by compressed underwriting margins and lower earnings.
CICÂ Share Performance at the Nairobi Securities Exchange
What the profit warning means is that 2024 profits were elevated by an accounting gain. Thus 2025 numbers are being compared to an artificially higher base. This creates a statistical drop-even if core insurance operations remain relatively stable.
The underwriter has also reported higher claims during the period under review. In insurance, profitability is heavily influenced by the claims ratio, meaning that higher claims lead to higher payout expenses. Higher payout expenses puts pressure on underwriting margins.
The CIC Group Board said that it remains confident in the business’ long term strategy, capital strength and ability to deliver sustainable value to shareholders as the group runs through its 2026-2030 strategic plan.
CIC Group Strategic Capital Reallocation Moves
The listed underwriter recently completed the disposal of two parcels of land as part of its ongoing portfolio optimisation strategy. The insurer has sold 50 acres neighbouring Tatu City from a larger 200-acre holding and 100 acres in Kajiado from a 495 acre holding.
The transaction will inject approximately KSh 1.8 billion into the Group, strengthening its balance sheet through improved liquidity and enhanced financial flexibility.
Importantly, the underwriter retains substantial land exposure in both locations, signalling that this is not a full exit but a strategic capital reallocation move. The proceeds are expected to support core insurance operations, capital efficiency and potential growth initiatives.
From an investor perspective, this reflects disciplined asset management-unlocking value from non-core holdings while reinforcing operational stability, according to analysts at Ketu Capital.
The listed underwriter was established as Cooperative Insurance Services(CIS) more than 57 years ago as an insurance agency within the then Kenya National Federation of Co-operatives (KNFC). In 1978, it was incorporated and licensed as Co-operative Insurance Services Ltd (CIS). In 1999, the firm changed its name from CIS to the Cooperative Insurance of Kenya Ltd (CIC).
As the underwriter expanded, it went through a series of corporate restructuring resulting into the formation of CIC Insurance Group, which split into CIC Life Assurance Limited, CIC General Insurance Limited and CIC Asset Management Limited.
CIC has since gone cashless, entered into Malawi and Uganda markets as well as South Sudan after listing at the Nairobi Securities Exchange(NSE).
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