Nairobi — CIC Insurance Group has issued a profit warning, projecting a 25 percent decline in net profit to Sh2.14 billion for the full year ending December 31, 2025.
During a similar period in 2024, the Group posted a profit after tax of Sh2.85 billion.
"The anticipated decline in profitability is primarily driven by non-recurrence of a significant one-off gain recognized in 2024 financials and elevated claims," the insurer said in a statement.
"In addition, the Group experienced elevated claims during the period, which reflects normal volatility within the insurance cycle and remains within expectations," it added.
CIC attributed its stronger 2024 performance to a Sh1 billion gain from the revaluation of its Kiambu land property.
The Group also earned Sh1.8 billion from the sale of two parcels of land near Tatu City and in Kajiado County. The properties included a 50-acre block neighbouring Tatu City and a 100-acre parcel in Kajiado.
Despite the disposals, the insurer and its subsidiaries still hold substantial land investments, including 200 acres near Tatu City and 495 acres in Kajiado.
"The Board remains confident in the Group's long-term strategy, capital strength, and ability to deliver sustainable value to shareholders as we implement our 2026 to 2030 strategic plan," the statement added.
