By KBC Reporter
CIC Insurance Group net profits grew by 4.4 percent to stand at Kshs 1.13 billion despite tough economic times that saw the industry experience lukewarm uptake in policies.
“It was a remarkable but also very challenging year for us as well as the competition but despite multiple challenges, CIC Group managed to register fairly good results,” said Magomere during the annual investors’ forum.
The performance was also attributed to major strategic decisions implemented by the firm with the re-branding as the most prominent and forging healthy relationships with customers and shareholders.
“I am happy to say that our current strategy is already beginning to bear fruit. Among the major exercises that we undertook was the realignment of our medical business, where we are pricing schemes based on claims experience and benefits sought,” said Mr. Magomere.
Gross written premium in 2015 was Kshs 11.4 billion down from Kshs. 13.7 billion in 2014 largely because of CIC’s new strategy on Medical Business and Group Life where emphasis is now placed on profitability of the various schemes.
Despite the slowdown, Mr. Magomere believes that his company’s new path will impact positively on its bottom line.
“Although this translates to a 16.6 % decline, we are confident that the current strategies will provide steady and profitable growth going forward,” said Mr. Magomere.
He reiterated CIC will continue to apply stringent measures in non-performing business lines and focus its efforts on identifying business opportunities that have potential in driving profitable growth.
“We believe that opportunities for growth in this market are vast, owing to the low insurance penetration rate that currently stands at about three percent. To grow the penetration levels the company is developing insurance products that best address the needs of the market,” said Magomere.
Group CEO Tom Gitogo said the company was revisiting its existing products to align them with the ever changing customer needs. In addition, Mr. Gitogo said the company was deliberately focusing on lines of business that have a significant growth potential namely pension and ordinary life.
“We have taken the challenge of raising awareness on insurance as an integral part of sound financial planning,”said Mr. Gitogo.
He added that the insurance sector was an important contributor to the growth of the economy stating that when people gainthe right information on insurance they willbe empoweredto plan for their future.
“CIC will continue to do this, to help people fully understand and appreciate the role of insurance and work together with other stakeholders to improve lives and our economy,”said Mr. Gitogo.
In a bid to further diversify its revenue streams, Mr. Gitogo said that the company was looking to start property development on its 200 acres in Kiambu in the second half of this year.