By Bunmi Yekini
Nairobi, Kenya – CIC Insurance Group Plc has announced a significant 57% growth in Profit Before Tax (PBT), reaching Kshs 3.99 billion for the financial year ending December 2024, compared to Kshs 2.54 billion in 2023. The remarkable growth was driven by increased insurance revenue and strong investment returns, which surged by 201% from Kshs 2.9 billion in 2023 to Kshs 8.8 billion in 2024.
Speaking on the financial performance, Patrick Nyaga, Group Managing Director & CEO, attributed the strong results to the company’s ongoing strategic initiatives.
“Our focus on executing our 2021-2025 strategy, alongside sustainable business integration, has enabled us to not only enhance financial performance but also strengthen governance structures and stakeholder impact,” Nyaga stated.
Key Financial Highlights
- Insurance revenue grew by 4% to Kshs 27.4 billion, up from Kshs 26.3 billion in 2023.
- Profit After Tax doubled to Kshs 2.8 billion in 2024, from Kshs 1.4 billion the previous year.
- Insurance service expenses increased by 7% to Kshs 24.2 billion.
- Total assets grew by 23% to Kshs 61.9 billion, reflecting CIC’s financial stability.
- Assets under management increased from Kshs 146 billion to Kshs 152 billion.
Performance of Key Business Segments
General Insurance:
CIC’s General Insurance business reported a 3% increase in insurance revenue, reaching Kshs 16 billion. Despite higher policyholder obligations, with claims expenses rising to Kshs 15 billion, the business maintained a PBT of Kshs 1.2 billion.
CIC Life Assurance:
CIC Life Assurance grew insurance revenue by 2% to Kshs 6.8 billion, while Profit Before Tax stood at Kshs 1.2 billion. The deposit administration business recorded a notable 44% growth, increasing assets from Kshs 9.9 billion to Kshs 14.2 billion.
Asset Management:
CIC Asset Management saw assets under management rise by 5% to Kshs 152 billion, while profit before tax increased by 7%. The firm continued to enhance customer experience through digital solutions, including a new mobile app.
Regional Expansion and Market Growth
CIC’s regional subsidiaries contributed 16% of the Group’s Profit Before Tax and 14% of insurance revenue. CIC South Sudan led with a 15% growth in insurance revenue, followed by CIC Malawi at 24%. However, CIC Uganda recorded a 2% decline due to challenges in its agricultural portfolio.
The company continued to expand its regional offerings, including the launch of individual life insurance in Malawi and a medical business in Uganda.
Strategic Outlook
As CIC enters the final year of its 2021-2025 strategy, it remains focused on:
- Advancing digital transformation and product innovation.
- Disposing of non-core assets to optimize balance sheet efficiency.
- Expanding its micro-insurance subsidiary to drive financial inclusion.
- Strengthening employee engagement and sustainability efforts.
“We are pleased with our growth trajectory and remain confident in scaling even greater heights. Our commitment to innovation, partnerships, and financial inclusion will continue to drive long-term value for our stakeholders,” Nyaga concluded.