CIC Insurance Group, one of the largest insurers in East Africa, has reported a net loss of KSh297 million for the full-year period that ended on 31st December 2020, a sharp drop from the KSh322 million net profit posted at the end of 2019.
The insurer’s gross written premiums decreased to KSh16.99 billion at the end of 2020, from KSh17.7 billion at the end of 2019. CIC’s claims and policyholder benefits also fell to KSh9.95 billion from KSh10.04 billion the year before.
Like most businesses in Kenya, CIC Insurance group was adversely affected by the covid19 pandemic. The company made some adjustments to cope with the effects of the pandemic including, investing in short term investments to avoid market volatility, moving most workers to remote working, and digitizing most of its business operations.
In the last year, CIC managed to reduce its operating and other expenses by KSh123 million, to KSh4.8 billion.
The firm’s total assets grew by 9.9% to KSh38.8 billion and its total liabilities also grew by 13.5% to KSh31.2 billion as at 31st December 2020.
CIC generated KSh2.3 billion cash from operating activities in the year under review and used KSh1.8 billion in investing activities.
The firm’s board of directors did not recommend a dividend for the year that ended on 31st December 2020.
Also read: CIC Insurance Issues Profit Warning
