CIC Insurance Group has recorded a huge profit before tax of Kshs 2 billion for the year ended December 2022, in comparison to Kshs 960 million achieved in 2021. This represented a growth of 112%. The strong performance was driven by continued execution of the group’s transformational initiatives focusing on customer experience, performance management, operational efficiency, digital transformation, research and innovation, cost competitiveness and debt management among others.
Against this background, the group’s gross written premium grew by 20% from Kshs. 19.7 billion reported in 2021, to Kshs. 23.7 billion in 2022. Additionally, the profit after tax grew by 64% to Kshs 1.1 billion in 2022, compared to Kshs 668 million reported in 2021. Moreover, the group’s total assets increased from Kshs 41.5 billion to Kshs. 46.7 billion, while the assets under management grew from Kshs 94 billion to Kshs. 127 billion.
In the general insurance business, the Kenyan subsidiary gross written premium grew by 21% to Kshs. 13.8 billion in 2022, from Kshs. 11.4 billion reported in 2021. Additionally, the profit before tax was up by 35% to Kshs. 872 million, compared to Kshs. 644 million in 2021. This was attributable to business growth, prudent underwriting and enhanced process efficiency.
CIC Life Assurance, another Kenyan subsidiary ,also recorded high growth. Its gross written premium grew by 17% from Kshs. 6.1 billion reported in 2021, to Kshs. 7.2 billion in 2022. By the same token, the profit before tax grew by a record 906% to Kshs. 631 million, from a loss before tax of Kshs. 79 million reported in 2021. This strong performance was due to strong focus on prudent underwriting and business growth across all the business lines.
CIC Asset Management on the other hand also performed very well. Its assets under management grew by 34% from Kshs. 94.5 billion in 2021, to Kshs. 127 billion in 2022. In the same regard, its profit before tax increased by 23% to Kshs. 644 million, compared to Kshs. 523 million reported in 2021. The company continues to lead the unit trust business with a market share of 40% as at December 2022.
The performance of the regional subsidiaries has continued to improve with a contribution of 11% to the gross written premium of the group during the period under review. To start with, CIC Uganda’s gross written premium grew by 29%, while CIC South Sudan grew by 61% and CIC Malawi grew by 6%. All regional subsidiaries were profitable with a combined contribution of 10% to the consolidated profit before tax of the group.
“The group will continue with the implementation of the transformational initiatives aimed at complete turnaround of all the subsidiaries and growth of the business performance,” said Mr. Patrick Nyaga, the Group Chief Executive Officer, adding that improvement of underwriting results remains a key focus for the group.
Mr. Nyaga further said that digitization will be a crucial pillar within the group’s strategy, with a view to providing a seamless end–to-end customer experience enabled by emerging technologies. “ Technology has been driving growth in the company with interventions like self- service portals for brokers, agents and mobile applications becoming key service points benefiting customers,” he said. “ To maintain the growth trajectory, CIC will continue investing in technology to strengthen performance and achieve customer retention in the long term,” he added. Key among these is the implementation of a robust system for the life business and the IFRS 17 solution.
Mr. Nyaga was emphatic that the group will remain focused on delivering on business growth while at the same time progressively building a socially responsible and sustainable business.