BUSINESS

CIC Insurance Revenue Up to KSh 13.9B as Profit Drops 10pc

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CIC Insurance Group building. PHOTO/CIC website
CIC Insurance Group building. PHOTO/CIC website
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CIC Insurance Group PLC has announced its half-year financial results, showing steady growth in its insurance business alongside a strong boost from investment income.

The Group’s core insurance revenue rose from Ksh 12.80 billion in the first half of 2024 to Ksh 13.87 billion in the same period of 2025, reflecting an 8.6 per cent increase.

This performance underlined continued demand for CIC’s traditional insurance products despite challenges in the wider sector.

The highlight of the results was a sharp rise in investment earnings. Net investment income jumped 121.4 per cent, climbing from KSh 681 million in 2024 to KSh 1.51 billion this year.

The Group said the positive performance was a key factor driving overall results, particularly in contrast to the previous year when investment income had declined.

CIC Asset Management (CICAM), the Group’s investment subsidiary, played a significant role in this turnaround.

It delivered a 127 per cent rise in net investment income to Ksh 1.5 billion and grew its asset management income by 37 per cent. CICAM contributed Ksh 338.9 million to the Group’s profit during the reporting period, underscoring its importance as a revenue driver.

Despite these gains, the Group’s profit after tax declined by 10 per cent to Ksh 638.5 million, weighed down by higher claims and underwriting costs. Industry observers note that insurers across Kenya have been grappling with increased operating expenses and claims outflows, despite investment activities providing much-needed support. CIC’s total assets, however, expanded by about 13 per cent to reach Ksh 70.1 billion, strengthening its balance sheet.

The results also come shortly after CIC highlighted strong growth in its microinsurance segment. The uptake of microinsurance policies increased from 11 per cent in 2023 to 18 per cent in 2024, reflecting a rise in trust and adoption among underserved communities.

CoopCare

The Group attributed this success partly to CoopCare, an affordable health cover for cooperative members. The product earned global recognition in 2024 after winning the UNDP-ICMIF Insurance Innovation Challenge Fund.

The Group’s recently published 2024 Sustainability Report credited CoopCare as a major contributor to the rise in microinsurance uptake, noting that such products are critical to enhancing access to insurance in low-income segments of the market.

“The release of the half-year financial report comes hardly weeks after the underwriter announced a notable growth in microinsurance policies from 11 per cent in 2023 to 18 per cent in 2024, underscoring an increasing trust and uptake of innovative microinsurance solutions among underserved segments,” the Group stated.

Adding;

“The newly released 2024 CIC Sustainability Report shows CoopCare, an affordable health cover for cooperative members, which earned global recognition in 2024 through the UNDP-ICMIF Insurance Innovation Challenge Fund, was a major contributor to the rise in microinsurance policies.”

Looking ahead, CIC faces the task of balancing underwriting costs with the momentum gained from its investment and asset management arms.

Analysts suggest that if investment income remains strong and microinsurance continues to expand, the Group will be well positioned to strengthen its foothold in Kenya’s competitive insurance sector.

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