CIC Insurance Group is undergoing major restructuring and offering voluntary early retirement or exit packages to employees, according to an internal memo issued to all Kenya staff on Thursday last week and obtained by Sharp Daily.
The memo from CIC Group CEO Patrick Nyaga announces an unspecified number of layoffs across four CIC companies: the insurance group, General Insurance Ltd., Life Assurance Company Ltd. and Asset Management Ltd. It directs employees to an intranet site with details.
“Following the Staff Town Hall meeting held today, 3rd November 2023, the circular to all Kenya staff has been placed on the Intranet – Jumuika where you can now access and familiarise with the contents,” the memo states.
Nyaga writes that human resources will also post frequently asked questions for staff reference. He encourages employees to contact HR or their HR business partner with any other questions.
The restructuring comes as CIC Insurance Group, one of Kenya’s oldest and largest insurers, faces increasing competition from new market entrants. Analysts say the company must cut costs and streamline operations to remain competitive.
CIC Insurance Group reported a significant increase in profits in the first half of 2023, boosted by strong growth in its insurance services revenue and lower expenses.
The company posted a net profit of KES 705 million in the six months to June 2023, a 168 percent jump from KES 263 million in the same period last year.
CIC attributed the profit surge mainly to a 93 percent increase in insurance services revenue, which doubled from KES 446 million in the first half of 2022 to KES 862 million for the same period this year.
The company said operating costs and non-attributable expenses dropped as a result of stringent claims processes and prudent cost management. Other expenses declined 3 percent from KES 704 million in June 2022 to KES 684 million in June 2023.
