CIC Group profit falls to $4 million in 2025 amid margin pressure

CIC Insurance Group Plc (CIC Group), a leading insurance and investment group partly owned by Kenyan tycoon Gideon Muriuki, reported a steep decline in earnings for the year ended Dec. 31, 2025, as rising insurance costs eroded profitability to approximately $4 million.

According to its recently released results, Net profit fell 82% to Ksh513.82 million ($3.9 million), down from Ksh2.85 billion ($21.96 million) recorded in 2024, despite continued top-line growth. The sharp drop in profitability underscores mounting pressure on insurers across East Africa, where rising claims costs and volatile investment income are squeezing margins even as premium volumes grow.

Insurance margins weaken despite revenue growth
Insurance revenue rose 11.8% to Ksh29.46 billion ($226.61 million) from Ksh26.35 billion ($202.7 million) a year earlier. However, the gains were overshadowed by a surge in insurance service expenses, which climbed to Ksh28.21 billion ($217.02 million), compressing underwriting margins.

As a result, the group posted an insurance service loss of Ksh176.05 million ($1.35 million), compared to a profit of Ksh343.98 million ($2.65 million) in 2024.

Net investment income also weakened, with investment returns declining to Ksh6.16 billion ($47.36 million) from Ksh8.84 billion ($67.97 million), reflecting softer yields across fixed-income and other asset classes. Other operating income dropped significantly to Ksh1.6 billion ($12.29 million) from Ksh3.82 billion ($29.38 million), further weighing on earnings.

Balance sheet expands as assets cross $560 million
Total assets rose 19.07% from Ksh61.94 billion ($476.49 million) to Ksh73.75 billion ($567.3 million), driven largely by a jump in financial investment assets, which increased to Ksh54.33 billion ($417.91 million).

Total equity grew by 7.55% to Ksh11.85 billion ($91.12 million), supported by retained earnings, while total liabilities climbed to Ksh61.9 billion ($471 million), reflecting higher insurance contract obligations. Cash and cash equivalents stood at Ksh12.91 billion ($98 million) at year-end, up from Ksh10.02 billion ($76 million) in 2024, supported by positive operating cash flows.

CIC Group recommends dividends, Gideon Muriuki remains key beneficiary
CIC Group, headquartered in Nairobi with a regional presence in South Sudan, Uganda, and Malawi, offers innovative financial services to over 1 million customers through its insurance and asset management platforms, including digital offerings such as EasyBima. Its network includes 25 local branches, over 1,000 financial advisors, and various online platforms.

Gideon Muriuki, a leading Kenyan tycoon and the CEO of Co-op Bank, holds the largest individual stake in CIC Group at 5.27%, representing 137,824,304 shares, currently valued at Ksh624.34 million ($4.8 million). He is poised to receive Ksh17.92 million ($137,830.58) as dividend. This, along with his 2% stake in Co-op Bank, solidifies his position among the wealthiest investors on the Nairobi Securities Exchange.

On the back of strong financials, the board recommends a final dividend of Ksh0.13 ($0.001) per share, totaling Ksh374.4 million ($2.88 million) for the year ended December 31, 2025. Shareholders can expect the dividend to be credited to their accounts starting June 9, 2026.