NAIROBI, Kenya, Aug 12- CIC Insurance Group has reported a profit before tax of Sh337 Million for its half year ending 30 th June 2021 compared to a loss before tax of Sh287 Million it recorded in a similar period last year.
The group through a statement said improved performance was boosted by resilient growth in the topline and strong investment returns.
In the period under review, gross written premium grew by 16 percent to Sh10.8 Billion from Sh9.3 Billion.
The Insurer says the strong performance was driven by growth in all businesses except South Sudan where the business was repricing to more profitable business.
Investment income grew 168 percent to Sh1.6 Billion from Sh0.6 Billion prior year due to gains in equity portfolio and unwinding of forex losses from currency translation of foreign subsidiaries.
“COVID-19 pandemic adversely affected the Life Assurance business with Group Life claims increasing in the period. The company has adopted strategies to mitigate this impact as we support our clients who have been affected by the Pandemic,” reads the statement.
The property market recorded a marginal growth but there were no revaluation gains or losses for the current period.
On the Kenyan subsidiaries, CIC Group General Insurance Business saw its Gross Written Premium up 16 percent from Sh5.9 Billion reflecting new business wins.
The business recorded a profit before tax of Sh345 million compared to a loss of Sh190 million same period prior year.
At the same time, CIC Life Assurance . gross written premium grew by 9 percent to Sh2.9 billion compared to Sh2.6 billion prior year.
In view of the life claims owing to the Pandemic, the company recorded a loss before tax of Sh270 million down from a profit before tax of Sh31 million same period prior year.CIC Asset Management saw its Profit before tax increased from Sh130 million same period last year to Sh225 million mainly as a result of growth of Assets under Management by 35 percent to Sh89 billion from Sh66 billion. `CIC Malawi business continued a growth trajectory with the gross written premium increasing by 95 percent.On the other hand, CIC Uganda Gross written premium grew by 50 percent with stable growth in investment income.Consequently, CIC South Sudan saw its Gross written premium declined due to business attrition following repricing to more profitable business.As a result, the company recorded a profit before tax of Sh330 million with strong Investment returns registered.
