This archive report was first published on 17 December 2019.
On December 17, 2019, CIC Insurance Group issued a profit warning, alerting investors to a significant decline in earnings.
The Nairobi Securities Exchange-listed insurer expected a net profit of below Sh469 million, a drop from the previous year's earnings of Sh625.3 million.
According to the company's board, adverse claims in key lines of business had significantly impacted overall group profitability.
Despite top-line growth, the company's net profit in the half year ended June dropped 96% to Sh20.9 million, driven by major losses in the life insurance business.
Claims rose 8% to Sh5 billion, while operating expenses increased 4.5% to Sh3.2 billion, hurting the bottom-line.
The Insurance Regulatory Authority reported that CIC Life's claims settlement ratio averaged above 53% between January and September.
As the company undergoes a transition at the top, with Tom Gitogo quitting as CEO on October 9, Elijah Wachira has taken over in an acting capacity.
