CIC Insurance has released its half year results for the period ended 30th June 2016 posting a 13% drop in total income of Ksh 6.3 Billion against Ksh 7.2 Billion posted in the same period the previous year. However, the bottom line numbers were improved as profit before tax rose by 48% to Ksh 399 Million compared to Ksh 269 Million posted in June 2015.
Related; KQ & Stanchart dropped from NSE 20 Share Index,replaced by DTB & CIC
Major Highlights from the Results
- Gross premium income declined by 10% to stand at Ksh 6.2 Billion with the management arguing that they were continuing to pursue quality over quantity business.
- Investment income and other income declined by 22% from Ksh 1.58 Billion to Ksh 1.24 Billion in June 2016 mainly because of decline in interest rates and a depressed securities market.
- Claims incurred declined by 26% from Ksh 4.3 Billion in June 2015 to Ksh 3.1 Billion in June 2016.
- Operating and other expenses remained flat at Ksh 2.3 Billion
- Profit after tax increased by 75% to Ksh 367 Million against Ksh 209 Million posted in June 2015.
Related; Kenyan Blue Chips Hammered: ‘The Barometer’ says it All.
Future Outlook & Share Price
The company says it will continued to pursue its strategic plan of consolidating its business gains, improving efficiency and settling on its regional businesses.
On Friday at the Nairobi Securities Exchange, CIC Insurance Group shares closed at Ksh 4.40 per share, which is 8.64% above its 1 year low of 4.05, this is demonstrated in the chart below.
(NSE, Kenyan Wall Street, FT)
