CIC Insurance Group Plc is pleased to report a Profit Before Tax of Kshs 2.5 Billion for the year ended December 2023 compared to the restated Profit before tax of Kshs 823 Million recorded in 2022 representing a 209% growth. The strong performance was largely attributed to the growth in insurance revenue and improved investment income during the year.
The business maintained a growth trajectory driven by the execution of our transformational initiatives focusing on customer experience, performance management, operational efficiency, digital transformation, research and innovation, cost competitiveness and debt management among others. We are also pleased to report that CIC Insurance Group Plc has adopted the IFRS 17 standard as of 1 January 2023 and comparative periods have been restated to reflect the application of the new accounting standard.
Kenya Subsidiaries
- General Insurance Business: Insurance revenue was reported at 15.5 B being 21% growth from prior year restated at 12.8B while Profit before tax reported a 55% growth to close at Kshs. 1.4B from the restated Kshs. 892M reported in the year 2023. The company further reported a 24% Return on Equity growing from 10% reported in the prior year.
- CIC Life Assurance: The Company reported KShs. 6.7B insurance revenue being 22% growth from prior year. This was as a result of increase in new business in the year which resulted to notable 33% growth in Group Credit portfolio. The profit before income tax was KShs 1.3B being 431% growth from prior year’s loss before tax Kshs 378M.
- CIC Asset Management: The company’s assets under management grew by 15% to Kshs 146 billion up from Kshs 127 billion in 2022. Profitability rose 10.4% year-on-year to Kshs. 704 million, while our customer-centric approach was clearly demonstrated by the 30% increase in our client base.
Regional Subsidiaries
The performance of regional subsidiaries has continued to improve with a contribution of 13% to the insurance revenue of the Group during the period. CIC Uganda insurance revenue grew by 30% while CIC South Sudan grew by 70% and CIC Malawi grew by 19%. We have continued to invest on product offering expansion within our regional business which has been reflected in the revenue growth.
Strategic Outlook
We continue to drive our transformation strategy across all our businesses, with key focus in the year 2023 centered on the functional structure across the Group enabling proper alignment of roles which results to team synergies and enhanced productivity. We have also implemented various culture transformation initiatives geared at entrenching high performance culture.
Looking forward we are focusing on product innovation to ensure alignment of our offerings to the dynamic customer needs and preferences as well as implementation of a robust digital transformation strategy that will not only focus on on-boarding emerging technologies but also a re-imagining our business processes and model to ensure seamless customer experience. We are also looking at product offering expansion for our regional business to cover individual life, medical and asset management.
The other key area of focus for the Group has been on balance sheet optimization to ensure that all our businesses are optimally capitalized. Disposal of Phase 1 of Kiambu property is progressing very well and are looking to finalize this even as we target our other land property in Kajiado.
Conclusion
We are focused on maintaining the business growth trajectory while at the same time progressively building a socially responsible and sustainable business. The leadership remains confident and committed to delivering our strategy and forging strong business partnerships with various stakeholders across the markets that are aligned to our business strategy.