CIC Insurance Group Plc is pleased to report a Profit Before Tax of Ksh960 Million for the year 2021 compared to a loss before tax of Ksh80 Million recorded in 2020.
This is a strong performance despite the devastating effects of the Covid-19 pandemic.
The positive results are attributed to the implementation of key transformational initiatives during the year, key among them: performance management, functional structures to support the company's Corporate Strategic Plan, operational efficiency, cost optimization, digitization, research and innovation among others.
Focus on their regional businesses has yielded good results contributing 11 per cent of the Group’s gross written premium.
Key Highlights
The Group’s gross written premium excluding pension contributions increased by 16 per cent to Ksh19.6 billion compared to Ksh16.9 billion at the end of 2020.
Investment income grew significantly by 64 per cent from Kshs1.4 billion in 2020 to Kshs2.3 billion in 2021 driven by increased investments in various instruments.
Operating and other expenses for the year stood at Ksh4.7 billion whereas, in the previous year, the company incurred Ksh4 billion.
Total assets increased by 7 per cent to Ksh41.5 billion compared to Ksh38.8 billion at the end of 2020.
Management fees grew by 35 per cent owing to a growth of 17 per cent increase in assets under management in the CIC Asset Management business from Ksh80 billion to Ksh94 billion. Customers continued to increase investments due to good returns and trust in the brand.
Kenya Subsidiaries
In the general insurance business, the Gross Written Premium went up by 12 per cent to Ksh11.4 billion compared to Ksh10.1 billion in 2020.
Profit Before Tax increased by 152 per cent from Ksh256 million to Ksh644 million owing to growth in business, improved systems and processes leading to operational efficiency and improved customer experience.
CIC Life Assurance. Gross Written Premium grew by 24 per cent from Ksh4.9 billion to Ksh6.1 billion driven by Group and ordinary life. Owing to the increased claims driven by the global pandemic, the company recorded a loss before tax of Ksh79 million.
At CIC Asset Management, assets under management grew to Ksh94.5 billion compared to Ksh80.6 billion in 2020 representing a 17 per cent increase.
The company made a Profit Before Tax of Ksh523 million compared to Ksh361 Million the previous year, an increase of 45 per cent. The company continues to be a market leader in the Unit trust business with a 42 per cent market share.
Regional Subsidiaries
The regional subsidiaries 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 regional subsidiaries were profitable with exception of CIC Uganda. The regional subsidiaries contributed significantly to the Group’s bottom line.
Outlook
CIC Group will 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 their 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 the company's Corporate Strategic Plan.
CIC's focus on balance sheet re-organization is on course and aims at optimal utilization of the available resources including disposal of non-core assets mainly land and focusing on the core business of the Group.
The focus on research and development will be key as well as innovation ensuring capacity to expand CIC's product offering and thus enhance product performance and customer experience.
Additionally, group-wide operational efficiency focusing on cost optimization, systems uptime and process re-engineering is of critical importance and a focus area by the Group.
Digitization is a key priority with optimizing investment in digital technology, mainly self-service channels, portals, and upgrading the firm's systems with modern technology to support group objectives for faster and accurate reporting, decision-making as well as superior customer experience.
Conclusion
CIC Insurance Group Plc will continue to be resilient and confident of growth and profitability, in the medium to long term as the economy fully re-opens, and as the group transformation initiatives’ full impact is achieved.