Change of tide for CIC as insurer posts Sh259m half year profit
Regional insurer CIC Group has stormed back into profitability after posting net earnings of Kes259.5 million in the six months to June, reversing a Kes 335.5 million loss suffered at same stage last year.
The change of tide to profitability is attributable to improved income as the Group’s investment and other income surged to Kes2.6 billion from Kes 1.2 billion last year.
“Investment income saw a marked improvement and this was mainly due to unwinding of prior year’s foreign exchange losses in South Sudan and gains from our equities portfolio,” CEO Patrick Nyaga said.
In the period, the firm’s gross written premiums improved to Kes 10.8 billion from Kes 9.3 billion but net earned premiums remained unchanged at Kes 7.1 billion.
“Gross written premiums grew in all our businesses except South Sudan and for South Sudan it is because we were realigning businesses to profitable customers,” Mr Nyaga added.
Read also: Why opening a bank account will be a preserve of NHIF members
The company’s claims went up by seven per cent to close at Kes 5.8 billion and the insurer said this was due to benefit payouts in the life insurance segment owing to effects of the Covid-19 pandemic.
In the period, CIC Group earnings per share at the Nairobi bourse have turned positive growing to 6 cents from a weaker negative 13 cents.
