CIC Insurance has issued a profit warning says earnings for 2016 financial year are expected to be lower by more than 25 percent of earnings reported for in 2015.
“This announcement is based on the indicative financials of the Company with regard to the year ending 31 December 2016.” the company said.
“The company has registered strong top line growth with improved quality of business in most of the lines of business. However, because of the prevailing market conditions, the valuation of our shares portfolio at the Nairobi Securities Exchange has significantly dropped. Some lines in our general business had adverse claims experience while a reserving policy change in our life business resulted in significant increase negatively impacting overall business performance.
With the completion of the rebranding exercise, investment in administration systems for medical and pension business lines as well as continued enhancement of management of claims costs, the board is confident that this will see improved future performance by the Company.”
The announcement makes CIC Insurance the fifth listed Kenyan company to issue a profit warning since the third quarter of 2016.