The CIC Insurance Group Plc has reported a Profit Before Tax of Kshs 1.2 Billion as at June 2023 in its half-year results compared to the restated profit before tax of Kshs 472 Million in the 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 insurance revenue. The Group insurance revenue contributed by the Kenya subsidiaries recorded a 21% growth in the period.
The remarkable performance was driven by continued execution of our 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 Business; Insurance revenue grew by 21% to Kshs 7 Billion in June 2023 from Kshs 6 Billion recorded in 2022 attributable to business growth, prudent underwriting and enhanced process efficiency.
- CIC Life Assurance; Insurance revenue grew by 23% from Kshs. 3.5 Billion recorded in June 2022 to Kshs 4.3 Billion in June 2023. owing to strong focus on prudent underwriting and business growth across all the Life business lines.
- CIC Asset Management; Assets Under Management grew from Kshs. 104 Billion in June 2022 to Kshs. 138.5 Billion in June 2023 representing a 33% growth. The Profit Before Tax in June 2023 increased by 33% to Kshs. 334 Million compared to Kshs. 274 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 our money market fund grew by Kshs 1 Billion from Kshs 55. 9 Billion in June 2022 to Kshs 56.9 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 CIC Insurance Group is keen on driving its micro-insurance strategy in recognition of the importance this sector has in widening access to financial services. The sale of the insurer’s Kiambu land which was launched in November 2022 has progressed well and the project is expected to close phase 1 by close of the year even as it pursues sale of the other phases to optimize the group’s balance sheet.