CIC Insurance Group Plc, a leading cooperative insurer in Africa, has recorded a significant growth in profit before tax for the economic calendar year 2024.
The insurance giant’s financial books reported a profit before tax of Kshs 3.99billion (Kenyan shillings) for the year ending December 2024, compared to Kshs 2.54bn recorded in 2023; this represented a 57 percent growth.
Subsequently, the group’s total profit after tax grew by 100 percent to Kshs 2.8bn in 2024, compared to Kshs 1.4bn in the previous year.
The returns on investment increased from Kshs 2.9billion in 2023 to Kshs 8.8billion year-on-year (y/y).
Group Managing Director & CEO Patrick Nyaga, in a statement, attributed this strong performance largely to growth in its insurance revenue generation and strong investment returns, which grew by 201 percent in the period under review.
“We are pleased with the growth trajectory of our business and remain confident in our ability to scale even greater heights. We are committed to delivering our strategy and forging strong business partnerships with stakeholders across our markets, ensuring alignment with our business goals,” he said.
Touching on the strategy behind this strong performance, he said: “The business has remained focused on executing our 2021-2025 strategy, which is underpinned by 12 transformational initiatives.
We have also integrated sustainability into our business strategy and operations, enhancing our focus not only on financial performance but also our impact on the environment, various stakeholders and the continuous strengthening of governance structures”.
Other key performance indicators
The CIC Insurance Group, offering a wide range of insurance and financial services focused on micro-insurance and innovation with a presence in Kenya, Uganda, South Sudan and Malawi, reported a revenue growth of four percent from Kshs 26.3billion in 2023 to Kshs 27.4billion for 2024.
The group’s investment income grew by 201 percent from Kshs 2.9bn in 2023 to Kshs 8.8billion, while insurance service expenses grew by seven percent from Kshs 22.5bn to Kshs 24.2billion y/y.
The group’s total assets grew by 23 percent from Kshs 50.3bn in 2023 to Kshs 61.9bn, while assets under management (AUM) increased from Kshs 146bn to Kshs 152bn within the same period.
Market Expansion Developments
Commenting on the what the future holds for the brand, Mr. Nyaga, said: “We continue to invest in expanding our product offerings within our regional business, as reflected in the revenue growth”.
In the year under review, the group, with regard to expansion initiatives, launched its individual life business in Malawi and went ahead to introduce its medical business in Uganda.
Under the four-year strategic plan, CIC expanded its product portfolio, launched a pharmacy business, enhanced its digital capabilities and strengthened its technology and sustainability frameworks. Additionally, progress has been made in the optimisation of its asset base.
The group MD emphasised that as the company enters its final year of the 2021-2025 strategy plan, it is noteworthy to mention that it has made significant strides in its growth trajectory.
Strategic Outlook
Looking ahead, the CIC Group has indicated its intention to focus on advancing digital transformation, product innovation and diversification; rebalancing its balance sheet by disposing of non-core assets; executing its Micro Insurance Subsidiary strategy to drive financial inclusion; strengthening employee engagement to enhance stakeholder value; and deepening sustainability and shared value commitments.
