•Last year, the company paid over Sh1.7billion in claims, most of it related to Covid-19 with medical, funeral and loans cover topping the list.
•Group gross written premium, excluding pension contributions, increased to Sh19.6 billion from Sh16.9 billion in 2020.
Image: FILE
CIC Insurance Group has posted a Sh668.4 million profit for the year ended December 2021, bouncing back from a Sh296.8 million loss in 2020.
Full-year profit before tax was Sh960 million from a Sh80 million loss recorded in 2020, the best performance in six years.
The performance, according to management defied the tough operating conditions occasioned by Covid 19 that last year broke its 13-year profit-making run.
The 2020 loss came amid higher taxation and reduced premiums, reversing the net profit of Sh321.5 million recorded a year earlier.
During the year under review, the group’s gross written premium, excluding pension contributions, increased to Sh19.6 billion, from Sh16.9 billion in 2020.
Investment income grew significantly by 64 per cent from Sh1.4 billion in 2020 to Sh2.3 billion in 2021, driven by increased investment in various instruments.
During the year, its general insurance business recorded improvement with gross written premium growing 12 per cent to Sh11.4 billion, compared to Sh10.1 billion in 2020.
Under the CIC life assurance, gross written premium grew by 24 per cent from Sh4.9 billion to Sh6.1 billion, driven by group and ordinary life.
However, the company recorded a loss before tax of Sh79 million in the segment, owing to increased claims from Covid-19 claims.
It paid more than Sh1.7 billion in claims, most related to Covid-19, with medical, funeral and loans cover topping the list.
The value of assets under management have grown to Sh 94.5 billion from Sh80.6 billion in 2020, representing a 17 per cent increase, as the company remains a market leader in unit trust business with a 42 per cent share.
Co-op Bank is the largest and strategic shareholder in CIC with a 24.8 per cent stake.
The insurer's regional operations have continued to grow and improve performance, contributing to 11 per cent of the group's gross written premium.
CIC Malawi grew gross written premium by 43 per cent while CIC Uganda grew by 44 per cent. The firm also has presence in South Sudan.
"The regional subsidiaries were profitable with exception of CIC Uganda. They contributed significantly to the Group’s bottom line," Group chief executive Patrick Nyaga said on Wednesday.
He attributed the results to the improved performance management, better structures, operational efficiency, cost cutting, digitisation, research and innovation.
Operating and other expenses however increased to Sh4.7 billion up from Sh4 billion, amid higher claims and policyholders’ benefits, commissions expenses.
Management fees grew by 35 per cent owing to a 17 per cent growth in assets under management in the CIC asset management business
"CIC Group will continue with the transformation initiatives aimed at growth and improving the business performance," Nyaga said.
He said they will focus on improving underwriting profit for all CIC businesses in Kenya and the region.