CIC Insurance Group Plc has reported a profit after tax of Ksh705.4 million for the six months ending 30th June 2023, up from Ksh263 million in a similar period last year. Profit Before Tax rose Ksh1.2 Billion as at June 2023 compared the restated profit before tax of Ksh472 Million same period in 2022, representing a growth of 153%.
Overall insurance revenue grew by 20% compared to restated prior period, with all the Kenya and regional subsidiaries recording growth in revenue. The group insurance revenue contributed by the Kenyan subsidiaries recorded a 21% growth in the period.
The remarkable performance was driven by continued execution of CIC’s 2021-2025 strategy underpinned by key transformational initiatives focusing on customer experience, digital transformation, data analytics, performance management, operational efficiency, research and innovation and debt management among others.
General Insurance revenue grew by 21% to Ksh7 billion in June 2023 from Ksh6 billion recorded in 2022 attributable to business growth, prudent underwriting and enhanced process efficiency.
CIC Life Assurance revenue grew by 23% from Ksh3.5 Billion recorded in June 2022 to Ksh4.3 billion in June 2023, owing to strong focus on prudent underwriting and business growth across all the Life business lines.
CIC Asset Management funds under management grew from Ksh104 billion in June 2022 to Ksh138.5 billion in June 2023, representing a 33% growth. Profit Before Tax in June 2023 increased by 33% to Ksh334 Million compared to Ksh274 Million reported in June 2022.
The company continues to lead the Unit trust business out of an industry of 36 licensed players with a market share of 34.7% as at March 2023. The Assets under management for the money market fund grew by Ksh1 billion from Ksh55. 9 billion in June 2022 to Ksh56.9 billion in June 2023.
The performance of regional subsidiaries has continued to improve with a contribution of 10% to the insurance revenue of the Group during the period. CIC Uganda insurance revenue grew by 3% while CIC South Sudan grew by 47% and CIC Malawi grew by 3%.
“The Group will continue with the implementation of the Group’s strategic initiatives aimed at transformation of our business to deliver best value to our shareholders, customers and other stakeholders,” said CIC Insurance Group CEO Patrick Nyaga.
Mr Nyaga said digital transformation would be a crucial pillar in the Group’s strategy. “To maintain the growth trajectory CIC will continue investing in technology to strengthen performance and achieve customer retention in the long term,” he said.