CIC Insurance Group has reported a net profit of Kshs. 1.1 billion for the year ended December 2022, a rise of 63.6% from the Kshs. 668.0 million recorded in 2021.
The improved performance has seen the CIC board propose a dividend payment of Kshs. 0.13 per share dividend to shareholders, in a payout that will amount to Kshs. 340 million. This will be a boon to investors who had missed out on dividend payouts for 2021 as the company sought to consolidate its assets through retained earnings.
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The insurer said the performance was mainly driven by a growth in Net Earned Premiums, which surged by Kshs. 2.8 billion, an 18.8% growth, to Kshs. 17.5 billion in 2022 from Kshs. 14.7 billion in 2021.
Fees and commission income also grew to Kshs. 2.4 billion from Kshs. 2.1 billion during the reference period as diversification initiatives began to bear fruits.
Despite the surge in income, Operating and other expenses grew to Kshs. 5.5 billion in 2022, a 17.0% increase from the Kshs. 4.7 billion recorded in the previous year.
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Total assets were however on the rise, increasing to Kshs. 46.7 billion from Kshs. 41.5 billion in 2021. Net claims and benefits also increased by 10.8% to Kshs. 11.7 billion from Kshs. 10.5 billion in the 2021 financial year.
CIC Group Chief Executive Officer Patrick Nyaga attributed the results to continued execution of the company’s initiatives. He further noted that the group will continue with the implementation of the transformation initiatives aimed at complete turnaround of all the subsidiaries and growth of the business performance.
Among its Kenyan subsidiaries, general insurance business posted a profit before tax of Kshs. 872.0 million compared to Kshs. 644.0 million in 2021 which was attributed to business growth, prudent underwriting and enhanced process efficiency.
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CIC Life Assurance reversed its fortunes to record a Kshs. 631.0 million profit before tax from a loss before tax of Kshs. 79.0 million reported in 2021 attributed to strong focus on prudent underwriting and business growth across all the business lines.
CIC’s asset management arm, the largest in Kenya by total assets under management, posted Kshs. 644.0 million in profits compared to Kshs. 523.0 million reported in 2021.
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