CIC Insurance Group has reported a 153% rise in its net profit to Kshs 1.2 Billion as at June 2023. This is as compared to Kshs 472 Million which was realized in the same period in last year.
The rise in profitability was on the back of a 20% growth revenue to Kshs 12.9 Billion up from from Kshs 10.7 Billion in June 2022. The Interest revenue grew by 21% from Kshs 975 Million to Kshs 1.2 Billion.
On the other hand, operating expenses declined by 3% from Kshs. 704 Million recorded in June 2022 to Kshs 684 Million mainly due to prudent cost management. This comprises the non-attributable expenses incurred by the Group.
The Groups total Assets increased from Kshs 45.3 Billion in December 2022 to Kshs 50.6 Billion a 12% growth. The Assets Under Management grew from Kshs 104 Billion in June 2022 to Kshs 138.5 Billion a 33% growth.
As for the Kenyan subsidiaries.
- General Insurance Business; Insurance revenue grew by 21% to Kshs 7 Billion in June 2023 from Kshs 6 Billion recorded in 2022 attributable to business growth, prudent underwriting and enhanced process efficiency.
- CIC Life Assurance; Insurance revenue grew by 23% from Kshs. 3.5 Billion recorded in June 2022 to Kshs 4.3 Billion in June 2023. owing to strong focus on prudent underwriting and business growth across all the Life business lines.
- CIC Asset Management; Assets Under Management grew from Kshs. 104 Billion in June 2022 to Kshs. 138.5 Billion in June 2023 representing a 33% growth. The Profit Before Tax in June 2023 increased by 33% to Kshs. 334 Million compared to Kshs. 274 Million reported in June 2022. The Company continues to lead the Unit trust business out of an industry of 36 licensed players with a market share of 34.7% as at March 2023. The Assets under management for our money market fund grew by Kshs 1 Billion from Kshs 55. 9 Billion in June 2022 to Kshs 56.9 Billion in June 2023.
The Group insurance revenue contributed by the Kenya subsidiaries recorded a 21% growth in the period. The performance of regional subsidiaries continued to improve with a contribution of 10% to the Insurance revenue of the Group during the period. CIC Uganda insurance revenue grew by 3% while CIC South Sudan grew by 47% and CIC Malawi grew by 3%.
The Group indicated that it will continue with the implementation of the Group’s strategic initiatives aimed at transformation of our business to deliver best value to our shareholders, customers and other stakeholders.