CIC Group net earnings dropped by 33% from KSh 480.9 million in 2018 to KSh 321.6 million in the financial year ended 31st December, 2019. The decrease is attributed to; high claims, a poorly performing equities market, and low returns from its property investments.
The leading insurance services provider also posted a drop in pre-tax profit from KSh 645 million to KSh 386 million during the period under consideration.
Gross written premiums increased by 7 percent from KSh 16.6billion in 2018 to KSh17.7billion in 2019. Size of the balance sheet increased by 7 percent to KSh 35.3 billion.
Shareholders will not receive any dividends for the year ended 2019. This is compared to KSh 0.13 per share dividend payout in 2018.
Claims and policyholders’ benefits expenses increased from KSh 9.5 billion to KSh 10 billion while net premiums earned rose marginally from KSh 14.2 billion to KSh 14.4 billion.
Fees and Commissions increased from KSh 903.8 million to KSh 1.3 billion while gross premiums earned rose to KSh 17.3 billion from KSh 16.9 billion. The value of property and equipment on the Group’s balance sheet shrunk from KSh 1.13 billion to KSh 1.06 billion in 2019.
CIC Group had a leadership change in October 2019 when its former Group CEO Mr. Tom Gitogo left and was replaced by Mr Elijah Wachira, who previously worked as Managing Director, CIC General Insurance Limited.
CIC Group handles asset management, general insurance business, and life assurance in Kenya. It also has footprints in South Sudan, Malawi and Uganda, underwriting general insurance and life insurance.
It owns 69 per cent of CIC Africa Insurance (South Sudan) Limited and 82 per cent shareholding in CIC Africa Co-operatives Insurance (Malawi) Limited while the Uganda business is wholly owned by the Group.
With a total of 3,878 shareholders and more than 1.3 million clients, CIC Group is considered one of the fastest growing underwriters in Kenya.
Established in 1968 as a department within the Kenya National Federation of Co-operatives, CIC Group celebrated its 50 years birthday last year.