CIC Insurance Group has warned investors and shareholders to expect a sharp fall in FY 2025 profit, citing elevated claims and the absence of a one-off KSh 1.0 Billion land revaluation gain booked last year. The alert comes barely a week after the insurer disclosed the sale of land worth about KSh 1.8 Billion to bolster liquidity and follows a weaker first half marked by compressed underwriting margins.
In a statement released under Capital Markets regulations, CIC said profit after tax for the year ended December 2025 is expected to be at least 25% lower than in 2024. The board attributed the outlook mainly to the non-recurrence of significant fair value gains recognized in the prior year and higher claims across the insurance portfolio.
The timing of the warning is notable just days earlier, CIC announced the disposal of land parcels in Kiambu and Kajiado counties for roughly KSh 1.8 Bn as part of a broader effort to strengthen liquidity and rebalance its asset base, underscoring pressure on cash generation even as headline earnings remain supported by investments.
The warning builds on trends already visible in H1 2025. While insurance revenue continued to grow, underwriting performance deteriorated sharply as claims rose, pushing the insurance service result materially lower. Earnings increasingly leaned on investment income to offset weakness in the core insurance business.
That reliance was evident in the 2024 results with CIC reporting profit after tax of KSh 2.85 Bn, nearly double the prior year, but much of the increase came from non-core items. Net gains from fair value adjustments to investment properties contributed KSh 1.01 Bn, largely from the revaluation of the group’s Kiambu land. Foreign exchange gains of KSh 1.37 Bn and a sharp rise in interest income further lifted reported earnings.
Underwriting margins, however, remained thin with the insurance service result falling to KSh 344 Million in 2024 from KSh 788 Million a year earlier, highlighting structural pressure in the core insurance operation even as reported profits surged.
In 2025, that cushion has weakened as the land revaluation gain does not repeat, and claims costs have risen, exposing the underlying earnings profile. The board described the claims experience as normal insurance cycle volatility, but the market response has been swift, with CIC shares down more than 21% in active trading.
The warning marks CIC’s first profit alert since 2023 and adds the insurer to a widening group of NSE-listed firms flagging weaker earnings. Over the past 12 months, at least 11 NSE-listed companies have issued profit warnings, reflecting broad-based pressure across sectors.
Despite the near-term setback, CIC said it remains confident in its capital position and long-term strategy as it rolls out its 2026–2030 plan.
