CIC readies for South Sudan, Uganda markets

By Standard reporter

Nairobi, Kenya: The CIC Insurance Group has finalised plans to begin operations in South Sudan and Uganda.

The firm will roll out the programmes under a regional expansion project to sustain its growth momentum.

The Group’s Chief Executive Officer Nelson Kuria said operations will begin in South Sudan in July while in Uganda, it will be towards the end of the year. The underwriter is also eyeing DRC, Tanzania and Malawi.

“We have carried out a review of our Information Technology Systems to ensure we have adequate systems to facilitate our strategy for regional expansion. We have also carried out initial feasibility studies and have identified strategic partners in readiness for these ventures,” he said.

 In South Sudan, the Group, which comprises CIC General Insurance, CIC Life Assurance and CIC Asset Management, expects to ride on its partnership with the Co-operative Bank of South Sudan to penetrate the market.  Mr Kuria disclosed the Group is engaging other prospective local and international partners to realise fast and effective expansion.

“Some international partners are already assisting us in staff capacity building and are even ready to commit financial resources in case of viable business opportunities. This is the fastest and most effective method to achieve growth,” he said.

 CIC Insurance Group has also ventured into the property sector. It has acquired several pieces of land for development. 

“We acquired 512 acres of land in Isinya, Kajiado County in addition to the 200 acre piece on Kamiti Road, Kiambu County. Plans are underway to carry out initial developments on the property in Kajiado,” Kuria disclosed.

The Group posted 110 per cent growth in its pre-tax profits from Sh787 million in 2011 to Sh1.65 billion in 2012. Gross premiums increased by 34 per cent to Sh9 billion in 2012 from Sh6.7 billion in 2011 while total rose by 27 per cent to Sh14.1 billion from Sh11.1 billion during the same period.

Kuria attributed the performance to new investment strategies and product innovation. The Group has ventured into unit trust business and pension schemes management under the CIC Asset Management subsidiary.