CIC Insurance Group has reported Sh668 million profits after tax for the year ending December 2021, reversing a net loss of Sh296.83 million recorded in the previous year.
The insurer has recovered from the Covid-19 effects that devastated businesses and resulted in higher claims by customers.
The company says its focus on cutting costs and operational efficiencies drove the resurgence in profits with a focus on regional businesses contributing 11 percent to the Group’s gross written premium.
The company however did not recommend a dividend payout similar to their position last year.
“The positive results are attributed to the implementation of key transformational initiatives during the year, key among them: performance management, functional structures to support our Corporate Strategic Plan, operational efficiency, cost optimization, digitization, research, and innovation among others,” CIC said.
The underwriter's gross written premium excluding pension contributions increased to Sh19.6 billion compared to Sh16.9 billion at the end of 2020.
Investment income grew 64 percent from Sh1.4 billion in 2020 to Sh2.3 billion in 2021 driven by increased investments in various instruments.
Operating and other expenses increased from Sh4 billion to Sh4.7 billion while management fees grew by 35 percent owing to a growth of 17 percent growth in assets under management in the CIC Asset Management business.
CIC Asset management arm grew from Sh80 billion to Sh94 billion as customers continued to increase investments for good returns.
The Group said its focus on balance sheet re-organisation is on course and aims at optimal utilisation of the available resources including disposal of non-core assets mainly land and focusing on the core business.
The firm said it will focus on digitisation as a key priority with optimising investment in digital technology, mainly self-service channels, portals, and upgrading systems with modern technology to support group objectives for faster and accurate reporting, decision-making as well as superior customer experience.
“Group-wide operational efficiency focusing on cost optimization, systems uptime, and process re-engineering is of critical importance and a focus area by the Group,” CIC said.
CIC becomes the first listed insurer to release full-year results offering a glimpse into insurance sector performance post-Covid-19.
The sector has witnessed a recovery in premiums as the economy reopened last year outpacing claims to lift firms back to profitability.