CIC double profits in Kenya
CIC Insurance Group, a co-operative micro-insurer with 1.3 million clients, posted a 110 per cent increase in pre-tax profits in 2012 to 1.65 billion Kenyan Shillings (around $20 million).CIC Insurance Group, a co-operative micro-insurer with 1.3 million clients, posted a 110 per cent increase in pre-tax profits in 2012 to 1.65 billion Kenyan Shillings (around $20 million).
The group operates asset management, life insurance and general insurance businesses. It recently expanded into property, unit trusts and pension schemes.
Most of the increase in profits came from investment income, which rose a massive 169 per cent, to KSh 1.64 billion thanks to high interest rates.
The chief executive Nelson Kuria, briefing the press on the financial results, announced : "We will seek to grow our business and not be part of the usual price undercutting that is ailing the industry."
Looking forward, the group will seek to grow its micro insurance products like health insurance and its life insurance business. "Life insurance covers that have been sold in the country have not even reached a million," said Kuria.
Claims incurred grew by only 47 per cent and costs of operations by 30 per cent.
The company was last year ranked top in claims settlement during the third Annual Insurance Awards.
CIC will distribute KSh 0.10 per share a total of KSh 218 millions, an increase of 11 per cent over the previous year.
Geographic expansion is planned to South Sudan and Uganda in the course of this year and into Tanzania and Malawi in 2014.