CIC Insurance Group Plc, a leading insurance firm listed at the Nairobi Securities Exchange (NSE), has begun a staff rationalization program that will see it reduce its workforce by 75 employees out of a total of 728 across its four companies.
According to Patrick Nyaga, CIC Insurance Group CEO, the rationalization involves a Voluntary Early Retirement Programme that encourages staff at different levels to apply with a benefit package on offer.
In a statement, CIC said the new structure is aimed at optimizing vital capabilities, eliminating functional and resource duplication, driving cost efficiencies, simplifying and removing organisational complexities. This follows the completion of a review of its detailed organizational design which culminated in the adoption of a leaner, flatter, and more transparent organizational structure.
- CIC Insurance Group expects that the exercise will lead to it becoming more efficient and profitable while increasing shareholder value and returns.
- The Group said it would resort to redundancies if this is absolutely necessary in according to the labour regulations.
- The Group made a pre-tax profit of KSh 1.2 billion as of 30th June 2023, a 153% increase from the previous year.
The current share price of CIC Insurance Group Limited (CIC) is KSh 2.20. CIC began the year with a share price of KSh 1.95 and has since gained 12.8%, ranking it 15th on the NSE in terms of year-to-date performance. It is currently the 23rd most valuable stock on the NSE with a market capitalization of KSh 5.75 billion, which makes up about 0.407% of the NSE equity market.