The Lower Eastern Times Opening The Third Eye
CIC Insurance Group recorded a 70.3 percent rise in profit after tax to Sh1.09 billion for the six months to June, driven largely by stronger investment income and continued expansion of its insurance operations.
Profit before tax increased by 30.2 percent to Sh1.56 billion, while insurance revenue climbed 17.8 percent to Sh16.34 billion, up from Sh13.87 billion during the same period last year.
Investment income was a key driver of the improved results, with returns increasing by 44 percent from Sh2.75 billion to Sh3.96 billion.
The performance comes amid growing demand for insurance and investment products, although the industry continues to face pressure from claims expenses and movements in financial markets.
CIC’s general insurance division reported an 18 percent increase in insurance revenue to Sh10.7 billion. Its profit before tax rose by 33 percent to Sh734 million, supported mainly by increased business in the motor and medical insurance segments.
The life assurance business also expanded, recording a 20 percent increase in insurance revenue to Sh4 billion. However, its profit before tax fell under pressure from higher claims, standing at Sh190 million.
CIC Asset Management was another major contributor to the group’s performance. Assets under management grew 19 percent year-on-year to Sh211.7 billion, while profit before tax increased by nine percent to Sh526 million, supported by stronger fund management fees.
The company’s fixed-income fund recorded particularly strong growth, expanding 61 percent since the beginning of the year to reach Sh29 billion. The increase reflects greater investor interest in fixed-income products, which offer comparatively stable returns.
CIC also recorded Sh962 million in revenue from land sales, generating a gross margin of Sh341 million after accounting for the cost of sales.
Performance across the group’s regional markets was mixed. Insurance revenue in Malawi grew by five percent to Sh595 million, while South Sudan recorded a 71 percent jump to Sh563 million. Uganda, however, saw insurance revenue decline by 31 percent to Sh426 million.
The group’s total assets increased to Sh81.68 billion from Sh73.75 billion a year earlier. Earnings per share also improved, rising from Sh0.23 to Sh0.38.
The latest results come as CIC continues expanding its microinsurance offering, seeking to reach customers who have traditionally had limited access to formal insurance services.
