CIC Insurance #ticker:CIC has registered a 31 percent rise in net profit to Sh625 million in the 12 months of trading ended December.
Results released Thursday show that the insurer’s income grew by nine percent to Sh17 billion supported by increased gross written premiums.
Net earned premium hit Sh14.2 billion, representing a jump of 17.95 percent from Sh12 billion booked at a similar time last year.
This mitigated investment income which shrunk by 1.69 percent to Sh1.51 billion during the period under review.
Claims incurred increased by 17.74 percent to Sh9.2 billion from Sh7.8 billion in line with business growth.
Total expenses dropped eight percent to Sh15 billion.
According to the CIC board, the improved profitability was underpinned on growth and diversification of revenue streams, innovation and information technology.
“The company registered strong topline growth with improved quality of business in most lines of business,” said the firm in commentary accompanying the results.
“The group focused on cost control measures resulting in lower operating expenses.” During this period, total assets increased by eight percent from Sh30.5 billion to Sh32.9 billion. The company has recommended the payment of a dividend of 0.13 per share totalling Sh340 million, up 8.63 percent from 2017’s Sh313 million.
The payout is subject to shareholder approval.
“The payment will be made on or about 31 May 2019,” said the firm.