Nairobi Securities Exchange listed CIC Insurance Group has issued a profit warning statement saying that its earnings for the 2016 financial year are expected to be lower by more than 25% of the earnings reported for the same period 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 blamed the prevailing insurance market conditions and the drop in the valuation of its equity portfolio at the Nairobi Securities Exchange.
“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.” added the company.
CIC Insurance becomes the fifth company to issue a profit warning statement since the third quarter of 2016. Other listed companies that have issued the same include, Nairobi Securities, Sanlam Group, Deacons and Sasini.
