Expansion lifts CIC Insurance first half profit to Sh138m

CIC Insurance Group managing director Nelson Kuria. The insurer is eyeing regional expansion. FILE PHOTO | NATION

CIC Insurance has reported a fourfold jump of its first half-year net profit aided by expansion in new premiums.

The Nairobi Securities Exchange listed firm posted Sh138 million after-tax profit for the six months to June this year compared to a restated net of Sh34.9 million for similar period in 2013.

The insurer, in which Co-operative Bank is the single largest shareholder, said on Friday gross premiums rose 26 per cent during the period to stand at Sh5.9 billion.

Operating expenses grew 19 per cent to Sh1.8 billion due to business expansion, while claims grew 33 per cent to Sh4.5 billion.

Earnings per share rose to Sh0.06 from Sh0.02 last year.

The company recently signed a joint venture deal with Malawi Union of Savings and Credit Co-operatives (Muscco) to start an insurance firm in Malawi.

"To sustain the growth momentum, the group is pursuing regional expansion, micro insurance, new channels of distribution and investment diversification," said CIC Insurance in a statement Friday.

The insurer is planning to roll out a Sh5 billion corporate bond in September and begin operations in Uganda and South Sudan.

Source: Business Daily