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CIC Insurance Beats Claims Growth to Triple Six-Month Profit

August 18, 2014

CIC Insurance Group has tripled its after-tax profit for the first half of the year helped by an increase in gross premiums written and investment income.

The NSE-listed insurer raked in a net profit of Sh138.35 million in the period ended June 30 compared to Sh34.85 million a year before, a 297 per cent growth.

This was despite a sharp rise in total spend, including net claims and policyholder benefits and operating expenses, to Sh6.34 billion from Sh4.93 billion, a 28.6 per cent increase it attributed to "business growth".

It attributed the jump in claims, up by 32.4 per cent to Sh4.50 billion in the period, to the medical insurance business.

"To sustain the growth momentum, the group is pursuing regional expansion, micro insurance, new channels of distribution and investment diversification strategies," it said in a statement to the Nairobi Securities Exchange on Friday.

CIC Group said it is currently engaged in "a business transformation exercise" targeted at enhancing efficiency, which will impact on its overall profitability.

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Source: AllAfrica

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