Patrick Nyaga-led CIC Insurance Group posts $2.38 million in profit for H1 2021

CIC Insurance Group Limited has declared KSh259.52 million ($2.38 million) in profit for the first half of 2021.

Partially owned by Co-operative Bank of Kenya, the leading Kenyan insurance group saw its profit grow from a loss of KSh335.53 million ($3.07 million) in the first half of last year to a profit of KSh259.52 million ($2.38 million) at the end of the first half of 2021.

The $2.38-million (KSh259.52 million) profit is the group’s highest mid-year profit since the first half of 2021.

CIC Insurance Group is an insurance and investment group headquartered in Upper Hill, Nairobi, the capital of Kenya and its largest city.

The group operates primarily in Kenya, Uganda, South Sudan and Malawi through a network of branches and operational subsidiaries spread throughout East Africa.

As of June 30, the group had an asset base of KSh41.09 billion ($376.42 million) and investment assets of KSh22.69 billion ($207.86 million).

Patrick Nyaga, the CEO of CIC Insurance Group, holds 12,176,400 ordinary shares in the group.

The insurer’s return to profitability in the first half of 2021 was spiked by a 119-percent growth in investment and other income in the period, as the group saw a rise in the value of its investment.

Its investment and other income in the first half of 2021 rose sharply by 119 percent from KSh1.20 billion ($10.99 million) in 2020 to KSh2.63 billion ($24.09 million).

While its net earned income remained flat at the 7-billion shilling ($64 million) mark despite the insurance industry’s exposure to risks originating from the COVID-19 pandemic.

As of press time, 2:30 PM (UTC), Aug. 11, shares in the group on the Nairobi Stock Exchange were trading at KSh3.10 ($0.02839), 190-basis points lower than its opening price of KSh3.16 ($0.02894).

The group’s market capitalization as of the drafting of this report was KSh8.11 billion ($74.28 million). Kenyan businessman Gideon Muriuki’s stake in the group was valued at KSh396.21 million ($3.63 million).

The market value of Nyaga’s stake in the group was valued at KSh37.75 million ($345,816).