CIC resumes dividend on hitting Sh1bn revenue

CIC Group chief government officer Patrick Nyaga (proper) with chief monetary officer Philip Kimani in the course of the launch of the insurer’s 2022 monetary outcomes on March 22, 2023. PHOTO | POOL

CIC Insurance coverage Group has resumed dividend payout for the primary time in 4 years as the online revenue for the monetary 12 months ended December 2022 grew by 63 p.c to Sh1.09 billion.

The expansion in internet earnings from Sh668.4 million within the earlier monetary 12 months has returned CIC to the Sh1 billion and above internet revenue membership for the primary time in seven years.

CIC had in 2015 returned a internet revenue of Sh1.14 billion from Sh1.08 billion it had posted in 2014, a efficiency that was attributed to enterprise realignment on the whole enterprise, group life enterprise and funding portfolio.

“The robust efficiency was pushed by continued execution of our transformational initiatives specializing in buyer expertise, efficiency administration, operational effectivity, digital transformation, analysis and innovation, value competitiveness and debt administration, amongst others,” stated Patrick Nyaga, CEO at CIC Group.

The improved efficiency has seen the CIC board suggest a cost of Sh0.13 per share dividend to shareholders, in a payout that can quantity to Sh340 million.

The dividend will likely be paid on or about Could 26, 2023 to the shareholders on the register on the shut of enterprise on Could 8.

Prime shareholder, Co-operative Insurance coverage Society Restricted, will obtain Sh252.6 million as dividends for its 74.3 p.c stake, whereas Co-operative Financial institution of Kenya chief government Gideon Muriuki will get Sh18 million for his 5.3 p.c stake.

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CIC’s pre-tax revenue had greater than doubled from Sh959.7 million to Sh2.03 million, however the revenue tax expense tripled from Sh291 million to Sh936 million.

The newest tax expense is an equal of 46 p.c of the gross earnings, a leap from 30.3 p.c in 2021.

Pre-tax revenue for the final insurance coverage enterprise rose by 35 p.c to Sh872 million, with CIC attributing this to enterprise progress, prudent underwriting and enhanced course of effectivity.

The life assurance unit rebounded from a pre-tax lack of Sh79 million to Sh631 million revenue, whereas the asset administration posted a 23 p.c rise in revenue earlier than tax to Sh644 million.

CIC Asset Administration was managing Sh127 billion by the top of December in contrast with Sh94.5 billion within the earlier 12 months, giving it a market share of 40 p.c.

CIC Group’s internet earned premiums grew from Sh14.7 billion to Sh17.4 billion on the again of elevated gross premiums.

Regional subsidiaries in Uganda, South Sudan and Malawi elevated their contribution to the group gross written premium to 11 p.c whereas their contribution to pre-tax revenue was 10 p.c.

The expansion in premiums, added by elevated curiosity income, charges and fee revenue, took complete revenue to Sh22.51 billion, translating to a 17 p.c progress from Sh19.2 billion.

“To take care of the expansion trajectory CIC will proceed investing in know-how to strengthen efficiency and obtain buyer retention in the long run,” stated Mr Nyaga.

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