CIC Insurance Group says its earnings for the financial year 2020 will be substantially lower compared to the same period in 2019.
In a statement issued Thursday, the Nairobi Securities Exchange listed firm says it experienced a tough operating environment in 2020 that resulted in lower than expected returns.
“With the tough operating environment, performance of the stock market has led to reduced returns from the equity investments,” it says adding that “Property market has been tight with limited opportunities to dispose properties and support in offsetting financial charges.”
The firm posted Ksh 386 million profit before tax in 2019, a decline from Ksh 645 million in 2018.
This was mainly due to higher year on year growth in claims expenses and flat growth in net earned premiums.