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CIC Group shakes off insurance services losses to post Ksh 1.4B profit

CIC Insurance Group profit after tax has risen by 818pc, from Ksh 157 million to Ksh 1.4 billion at the close of last year.

CIC Group Chief Executive Officer Patrick Nyaga attributes the massive growth in profits to stronger performance in insurance revenue and investment income experienced during the year under review.

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“The business maintained a growth trajectory driven by the execution of our transformational initiatives focusing on customer experience, performance management, operational efficiency, digital transformation, research and innovation, cost competitiveness and debt management among others,” said Nyaga.

“We are also pleased to report that CIC Insurance Group Plc has adopted the IFRS 17 standard as of 1 January 2023 and comparative periods have been restated to reflect the application of the new accounting standard.”

The insurer emerged from posting insurance services loss of Ksh 553.9 million in 2022 to Ksh 788.2 million, a 242pc increase, as insurance revenue rose 23pc to Ksh 25.4 billion from Ksh 20.7 billion.

On the other hand, the insurer’s investment income return grew by 14pc to Ksh 2.9 billion in 2023.

Revenue from General Insurance Business during the period was up 21pc to Ksh 15.5 billion from Ksh 12.8 billion, while that of CIC Life Assurance grew 22pc to Ksh 6.7 billion.

Similarly, the insurer reported a 15pc growth in asset under management to Ksh 146 billion.

“Profitability rose 10.4% year-on-year to Kshs. 704 million, while our customer-centric approach was clearly demonstrated by the 30% increase in our client base,” stated Nyaga.

Regionally, CIC Uganda insurance revenue grew by 30pc while CIC South Sudan grew by 70pc. CIC Malawi grew by 19pc.

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