CIC Insurance Group has posted an impressive 57% surge in profits before tax , reaching Kshs. 3.99 billion for the year ending December 2024, compared to Kshs. 2.54 billion in 2023. This outstanding performance has been fueled by strong investment returns and steady growth in insurance revenue, positioning the company as a leader in Kenya’s financial service sector.
Investment income saw a staggering 201% growth, rising from Kshs. 2.9 billion in 2023 to Kshs. 8.8 billion in 2024, demonstrating CIC’s strategic financial management. Additionally, the total assets expanded by 23% – from Kshs. 50.3 billion to Kshs. 61.9 billion in 2023 and 2024 respectively – reflecting a strong capital base and financial stability.
Speaking on the Group’s performance, Mr. Patrick Nyaga, the Group Managing Director and Chief Executive Officer noted: “We were able to achieve Kshs. 3.99 billion in profit before tax, just a few hundred million shy of Kshs. 4 billion. Our total assets now stand at about Kshs. 62 billion, up from Kshs. 51 billion in 2023. We continue to strengthen our financial position while delivering value to our stakeholders. Our commitment to customer excellence is evident, with a customer service index score of 86% and a network of over 7,000 agents and brokers.”
Steady growth
Insurance, being the company’s core business, continued to demonstrate resilience, with its revenue increasing by 4% ; from Kshs. 26.3 billion in 2023 to Kshs. 27.4 billion in 2024. Despite a challenging economic environment and rising claims expenses, the company managed to double its profit after tax from Kshs. 1.4 billion in 2023 to Kshs. 2.8 billion in 2024.
General insurance remained the group’s backbone generating Kshs. 16 billion in revenue, a 3% year-on-year growth. However, this growth came against a background of increased policyholder obligations, with insurance service and claims expenses rising from Kshs. 22.5 billion in 2023 to Kshs. 24.2 billion in 2024.
In the same vein, life insurance generated Kshs. 6.8 billion in revenue, reflecting a 2% growth from the previous year. A notable highlight was the 44% increase in deposit administration assets, from Kshs. 9.9 billion in 2023 to Kshs. 14.2 billion in 2024, reinforcing the company’s position in the long-term savings market.
Investment success and digital expansion
CIC’s Asset Management division saw steady gains, with assets under management growing from Kshs. 146 billion to Kshs. 152 billion ; a 5% rise. This growth was complemented by a 7% increase in profitability, with profit before tax climbing from Kshs. 704 million in 2023 to Kshs. 753 million in 2024.
A key driver of CIC’s success has been its focus on digital transformation. The launch of a new mobile app has enhanced customer engagement and accessibility to financial services, a move that aligns with the company’s broader strategy of leveraging technology for growth.
Strengthening the footprint in Africa
CIC’s regional subsidiaries contributed 16% to profit before tax and 14% to the group’s insurance revenue, underscoring their growing importance in the company’s expansion strategy. In that regard, South Sudan recorded a 15% rise in insurance revenue, demonstrating strong market penetration. Additionally, Malawi led the way with a 24% growth in insurance revenue, highlighting increasing demand for insurance solutions. Uganda, however, experienced a 2% decline, largely due to challenges in the agriculture portfolio.
To counter market challenges, CIC has launched an individual life insurance product in Malawi as well as a medical insurance segment in Uganda, expanding its service offering across East and Southern Africa.
Strategic focus
As CIC Insurance enters the final year of its 2021-2025 strategic plan, the company is laser-focused on growth, digital transformation, and sustainability. The key priorities include :expanding digital capabilities to streamline customer experience, diversifying revenue streams ( for instance through a newly launched pharmacy business), disposing of non-core assets to optimize the balance sheet, enhancing employee engagement to drive productivity and innovation as well as strengthening ESG (environmental, social, and governance) initiatives to align with global sustainability trends.
With the record breaking profit growth, strong financial reserves, and a clear strategic vision, CIC Insurance Group is well positioned to continue its dominance in Kenya’s financial landscape and beyond. The company remains committed to delivering value to stakeholders, embracing technology, and reinforcing its leadership in the insurance sector.
