Low returns and high claims exposure hurt CIC shares outlook

Guests at the investors briefing at the company’s offices in Nairobi. PHOTO | ANTHONY OMUYA | NMG

CIC Insurance #ticker:CIC stock is unappealing to investors due to high exposure to claims and a low return on equity despite having just reported a 154-per cent jump in 2017 full-year profit, researchers at Genghis Capital say.

The company has recommended the payment of a dividend and its net premiums as well as investment income rose, but analysts expect its price to come down by almost half.

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Note: The results are not exact but very close to the actual.