Insurer nets Sh668m in 2021 profit
CIC Insurance Group posted Sh668 million net profit for the year ending December 2021, on healthy income from investments and premiums, after recovering from Covid-19 shocks that devastated businesses.
This saw the insurer reverse a net loss of Sh296.83 million recorded in the previous year, attributing the fete to ongoing implementation of its corporate strategic plan, operational efficiency as well as cost optimisation.
CIC Group chief executive Patrick Nyaga said digitisation, research and innovation were among key strategic tweaks that spiked performance. “Our focus on balance sheet re-organisation is on course and aims at optimal utilisation of the available resources including disposal of non-core assets mainly land and focusing on the core business of the Group,” Nyaga said in a statement.
During that period, the insurer posted Sh960 million pre-profit for the full year to reverse a loss before tax of Sh80 million recorded the previous year.
Gross written premium without pension contributions surged by 16 per cent to Sh19.6 billion compared to Sh16.9 billion posted in 2020, while investment income grew significantly by 64 per cent from Sh1.4 billion in 2020 to Sh2.3 billion last year, driven by increased investments in various profit-driven instruments.
The group’s management fees also increased by 35 per cent, due to a 17 per cent growth in assets under management in the CIC Asset Management business from Sh80 billion to Sh94 billion, as customers continued to increase investments for good returns.
However, the board of directors did not recommend payment of dividends for 2021 compared to 2020.
Operations and other expenses for the year hit Sh4.7 billion compared to Sh4 billion the previous year. Total assets increased by seven per cent to Sh41.5 billion in the year under review compared to Sh38.8 billion recorded a year earlier.
Regional operations also registered an improved performance and all were profitable with exception of CIC Uganda whereby they contributed 11 per cent of the group’s gross written premium.
Gross written premium of the firm’s Malawian unit grew by 43 per cent while CIC Uganda grew by 44 per cent.