CIC Insurance Group has reported a remarkable bounce-back to profitability from loss territory with a profit before tax of Kshs. 960 Million, the best performance in 6 years.
While releasing the Group’s full-year 2021 Financial Results today, CIC Insurance Group reported a Profit Before Tax of Kshs. 960 Million for the year 2021 compared to a loss before tax of Kshs. 80 Million recorded in 2020, a strong performance despite the devastating effects of the Covid- 19 pandemic.
The Group said the positive results are attributed to the implementation of key transformational initiatives during the year, key among them: performance management, functional structures to support our Corporate Strategic Plan, operational efficiency, cost optimization, digitization, research and innovation among others.
The Group’s gross written premium excluding pension contributions increased by 16% to Kshs 19.6 billion compared to Ksh16.9 billion at the end of 2020.
The Group’s investment income also grew significantly by 64% from Kshs. 1.4 Billion in 2020 to Kshs. 2.3 Billion in 2021 driven by increased investments in various instruments.
Total assets increased by 7% to Kshs 41.5 billion compared to Kshs 38.8 billion at the end of 2020.
However, owing to the increased claims driven by Covid- 19 pandemic, the company’s CIC Life Assurance recorded a loss before tax of Kshs. 79 Million. This is after its Gross Written Premium grew by 24% from Kshs. 4.9 Billion to Kshs. 6.1 Billion driven by Group and ordinary life.
Meanwhile, the Group’s regional subsidiaries continued to grow and improve performance contributing to 11% of the Group gross written premium. CIC Malawi grew gross written premium by 43% while CIC Uganda grew by 44%.
Going forward, CIC Insurance Group plans to continue with the transformation initiatives aimed at growth and improving the business performance. The key focus is to significantly improve the Underwriting profit for all our businesses in Kenya and the region.
The group continues to review and implement a functional structure to support the achievement of the overall objectives as contained in our Corporate Strategic Plan. It will also focus on research and development as well as innovation ensuring capacity to expand our product offering and thus enhance product performance and customer experience.