CIC eyes regional market in new investment plan

By JACKSON OKOTH

NAIROBI, KENYA: Competition for a share of the regional insurance business has intensified. This follows plans by Co-operative Insurance Company (CIC) Group to set up operations in South Sudan, Uganda and Malawi. The firm joins Jubilee, British American and UAP insurance — Kenyan firms already having a regional network.

Financial results released yesterday for the year ended December 31, 2013, indicate CIC group’s operating expenses increased by 20 per cent to Sh2.4 billion from Sh2 billion in 2012, driven up by ongoing expansion efforts. As part of its regional expansion strategy, the insurer will kick off operations in South Sudan, Uganda and Malawi this year.

 “We are going out to the rest of Africa in partnership with co-operatives, in line with the international co-operative principle of co-operation among co-operatives,” said CIC Group Chief Executive Nelson Kuria.

The group’s Gross premiums written increased by 23 per cent to Sh11.1 billion for the period ended December 2013 up from Sh9 billion in 2012, mainly due to acquisition of new business through new and innovative distribution channels.

Investment and other income increased by 7 per cent to Sh1.7 billion up from Sh1.6 billion during the period under review due to increased investment portfolio and diversification through investment in real estate.

It has acquired 512 acres in Kajiado and 200 acres on Kamiti Road in Kiambu for its planned residential construction projects, expected to tap into rising demand for houses.

 “The purchase of land in the two counties that border Nairobi County is the first step towards entry into the very lucrative business of real estate development, which is long-term and more rewarding in terms of returns on investment,” said Kuria.

CO-OPERATIVE MOVEMENT

CIC was listed at the Nairobi Securities Exchange (NSE) in 2012 and has since expanded to 17 branches and a network of over 1,000 agents spread across the country. CIC is the preferred underwriter of the 10-million-member Co-operative movement in Kenya.

The company has a total of 3,878 shareholders comprising of CIS Co-operative Society as its strategic shareholder with 74.3 per cent and 3,877 individual investors holding the remaining 25.7 per cent.

With a capital base of Sh2.1 billion and 1.3 million clients, CIC has curved a niche as an underwriter for co-operative societies, giving it a captive market.

CIC recorded a profit before tax of Sh1.671 billion for the period ended December 2013 up from Sh1.649 billion in 2012.