CIC Insurance Group PLC reported a profit after tax of KES 1.09 billion for the six months ended June 30, 2026, up 70.3 percent from KES 638.5 million in the same period last year.
The increase came even as the insurer’s core underwriting business weakened. Insurance service result, the profit generated purely from writing and managing policies, fell 67.2 percent to KES 42.0 million from KES 128.2 million. Investment income covered the gap and then some, pushing the bottom line higher.
Underwriting Margin Narrows Further
Insurance revenue grew 17.8 percent to KES 16.34 billion from KES 13.87 billion. But insurance service expenses, largely claims and policy costs, rose faster, up 18.9 percent to KES 15.21 billion. Net expenses from reinsurance contracts held also climbed, up 15.1 percent to KES 1.10 billion, and together the two lines outpaced revenue growth and pushed the insurance service result down for a second straight period.
The decline extends a trend flagged by the group earlier in 2026. CIC issued a profit warning ahead of its full year 2025 results, citing rising claims pressure, and full year underwriting margins had already thinned considerably in 2024 and into 2025 as the group leaned more heavily on investment income to offset weakness in its core insurance business.
Investment Income and Diversification Carry the Result
Investment return rose 43.9 percent to KES 3.96 billion from KES 2.75 billion, lifting the net investment result, after finance expenses on insurance and reinsurance contracts, by 11.1 percent to KES 1.68 billion from KES 1.51 billion.
Revenue from asset management services grew 25.2 percent to KES 1.04 billion from KES 829.3 million. The group also recorded KES 962.0 million in revenue from land and pharmaceutical sales during the half, a new revenue line not present in the prior year period, against cost of sales of KES 621.0 million. Other operating expenses rose 33.8 percent to KES 1.25 billion from KES 935.3 million.
Operating profit increased 20.6 percent to KES 1.85 billion from KES 1.53 billion. After other finance costs of KES 282.9 million, down from KES 329.6 million, profit before tax rose 30.2 percent to KES 1.56 billion from KES 1.20 billion. Earnings per share increased to KES 0.38 from KES 0.23, up 65.2 percent.
The insurance service result has moved from KES 128.2 million in H1 2025 to KES 42.0 million in H1 2026, a decline that mirrors the underwriting pressure the group flagged in its 2025 profit warning, when it pointed to rising claims and thin margins even as revenue kept growing.
Balance Sheet Grows, Equity Up Modestly
Total assets rose 10.8 percent to KES 81.68 billion from KES 73.75 billion at the end of December 2025, driven by growth in financial investment assets, which increased to KES 63.65 billion from KES 55.33 billion. Reinsurance contract assets stood at KES 4.14 billion, down from KES 4.95 billion, while cash and bank balances fell to KES 314.7 million from KES 727.1 million.
Total equity increased 4.6 percent to KES 12.40 billion from KES 11.85 billion. Total liabilities rose to KES 69.29 billion from KES 61.90 billion, with insurance contract liabilities, the largest component, increasing to KES 60.97 billion from KES 52.68 billion. Borrowings declined to KES 4.10 billion from KES 5.02 billion.
The statement of changes in equity showed KES 374.0 million paid out to shareholders during the half, relating to the final dividend for the 2025 financial year. The announcement did not include a new interim dividend declaration for the period under review.
Cash and cash equivalents at period end stood at KES 14.40 billion, up from KES 12.91 billion at the start of the year. Net cash generated from operating activities was KES 3.08 billion, against net cash used in financing activities of KES 1.41 billion, largely reflecting debt repayments and the dividend payout.
Key Figures, H1 2026 vs H1 2025
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Insurance revenue | KES 16.34B | KES 13.87B | +17.8% |
| Insurance service result | KES 42.0M | KES 128.2M | -67.2% |
| Investment return | KES 3.96B | KES 2.75B | +43.9% |
| Net investment result | KES 1.68B | KES 1.51B | +11.1% |
| Asset management revenue | KES 1.04B | KES 829.3M | +25.2% |
| Operating profit | KES 1.85B | KES 1.53B | +20.6% |
| Profit before tax | KES 1.56B | KES 1.20B | +30.2% |
| Profit after tax | KES 1.09B | KES 638.5M | +70.3% |
| EPS | KES 0.38 | KES 0.23 | +65.2% |
Total assets and total equity are compared against December 31, 2025, the most recent audited balance sheet date, in line with the reporting convention used in the results. Total assets rose 10.8% to KES 81.68B from KES 73.75B, and total equity rose 4.6% to KES 12.40B from KES 11.85B.
