× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

CIC half year pre-tax profit up 48pc on lower costs

By Lee Mwiti | Jul 31st 2016 | 1 min read
By Lee Mwiti | July 31st 2016
CIC Insurance Group CEO Tom Gitogo

Financial services provider CIC Insurance Group braved a tough first six months of 2016 to raise its profit before tax by 48 per cent.

The half year financials show the CIC Group pre-tax profit stood at Sh399 million as at June 30, 2016, compared to the Sh269 million it posted over the same period last year.

CIC Group Chief Executive Officer Tom Gitogo said the firm has been steadily rolling out its business realignment strategy. “Today’s insurance customers are highly discerning therefore our transformation has entailed embracing new business and operating models geared towards better service delivery and seamless experience,” Gitogo said.

The firm’s gross written premiums fell by 10 per cent to Sh6.3 billion this year from Sh6.9 billion in June 2015. “In order for us to grow we recognised that it is important to make key investments in people and systems to get us to our destination,” said Gitogo. He added that CIC Group will focus on new unique market segments and develop specialised products to be distributed through innovative channels.

On expenditures, claims incurred declined from Sh4.3 billion in June 2015 to Sh3.2 billion in June 2016 indicating an improvement in quality of business. Operating and other expenses remained flat at Sh2.3 billion. This led to an overall decrease in total expenditure from Sh6.6 billion to Sh5.5 billion.

Share this story
Cabinet approves Sh1.8b bailout for cash-strapped Uchumi Supermarkets
A Cabinet meeting at State House approved Sh1.8 billion bailout for Uchumi Supermarkets. The Cabinet approval is a boon for the retailer that had asked the Government for Sh1.2 billion to settle part of the suppliers’ Sh3.6 billion debts in their turn-around strategy.
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.