CIC Insurance Group has registered a Profit Before Tax of 337 Million shillings for the half-year to 30th June 2021 compared to Loss Before Tax of kshs287 Million for the same period last year.
CIC Insurance Group has registered a Profit Before Tax of 337 million shillings for the half-year to 30th June 2021 compared to Loss Before Tax of 287 million shillings for the same period last year.
According to the insurance provider, Gross Written Premium grew by 16 percent to 10.8 billion shillings from 9.3 billion shillings driven by growth in all businesses except South Sudan where the business was repricing to a more profitable business.
At the same time, investment income grew 168 percent to 1.6 billion shillings from 0.6 billion shillings prior year due to gains in the equity portfolio and the unwinding of forex losses from currency translation of foreign subsidiaries.
Fund management fees for CIC grew by 41 percent to 400 million shillings from 300 million shillings as a result of the increase in funds under management.
Fee income and Re-insurance commission increased from 673 million shillings to 1.1 billion shillings, a 63 percent growth. COVID-19 pandemic adversely affected the Life Assurance business with Group Life claims to increase in the period. The company has adopted strategies to mitigate this impact as we support our clients who have been affected by the Pandemic.
The property market recorded a marginal growth but there were no revaluation gains or losses for the current period.
For the Kenyan market, general Insurance Business, gross Written Premium was up 16 percent from 5.9 billion shillings a prior year to 6.8 billion shillings reflecting new business wins.
The business recorded a profit before tax of kshs345 million compared to a loss of 190 million shillings in the same period the prior year.
For the CIC Life Assurance, Gross Written Premium grew by 9 percent to 2.9 billion shillings compared to 2.6 billion shillings a prior year. In view of the life claims owing to the Pandemic, the company recorded a loss before tax of 270 million shillings down from a profit before tax of 31 million same periods the prior year. Management has put mitigations in place to ensure significant improvement of the loss ratios.