CIC Insurance Group Plc (CIC Group), a leading insurance and investment group partly owned by Kenyan tycoon Gideon Muriuki, reported a more than 70% increase in net profit for the six months ended June 30, 2026, as stronger investment returns and growth in asset management offset weakening underwriting margins.

According to the group’s H1 2026 results, net profit climbed by 70.3% to Ksh1.09 billion ($8.4 million), from Ksh638.5 million ($4.9 million) in the same period last year. Profit before tax increased 30.2% to Ksh1.56 billion ($12 million), while earnings per share climbed to Ksh0.38 from Ksh0.23.

The stronger bottom line came despite continued pressure on the group’s core insurance business, with the insurance service result falling 67.2% to Ksh42 million ($323,000) from Ksh128.2 million ($986,000).

Insurance margins weaken despite double-digit revenue growth

Insurance revenue increased 17.8% to Ksh16.34 billion ($125.7 million) from Ksh13.87 billion ($106.7 million), supported by growth across the group’s insurance operations.

However, insurance service expenses rose faster than revenue, climbing 18.9% to Ksh15.21 billion ($117 million). Net expenses from reinsurance contracts held also increased 15.1% to Ksh1.10 billion ($8.5 million).

The faster increase in claims and other insurance-related costs left CIC Group with an insurance service result of just Ksh42 million ($324,486), compared with Ksh128.2 million ($990,455) a year earlier. The deterioration highlights the continued pressure on underwriting profitability even as the group expands its premium base.

CIC’s general insurance business recorded an 18% increase in insurance revenue to Ksh10.7 billion ($82.67 million), while profit before tax rose 33% to Ksh734 million ($5.67 million). CIC Life Assurance also grew insurance revenue by 20% to Ksh4 billion ($30.9 million), although increased claims experience kept profit before tax at Ksh190 million ($1.47 million).

Investment gains and asset management drive earnings

Investment returns emerged as the biggest earnings driver during the period, rising 43.9% to Ksh3.96 billion ($30.5 million) from Ksh2.75 billion ($21.2 million).

The increase lifted the group’s net investment result by 11.1% to Ksh1.68 billion ($12.9 million), helping compensate for the sharp decline in insurance service profitability.

CIC Asset Management also strengthened its contribution, with revenue from asset management services increasing 25.2% to Ksh1.04 billion ($8 million) from Ksh829.3 million ($6.4 million). Assets under management rose 19% year on year to Ksh211.7 billion ($1.64 billion), while the fixed-income fund grew 61% year to date to Ksh29 billion ($224.05 million).

The group also generated Ksh962 million ($7.4 million) from land sales, producing a gross margin of approximately Ksh341 million ($2.6 million). The additional revenue supported the group’s diversification beyond its core insurance operations. Consequently, operating profit rose 20.6% to Ksh1.85 billion ($14.2 million), while lower finance costs also supported the increase in profit before tax.

CIC Group expands balance sheet as assets approach $630 million

CIC Group’s balance sheet continued to expand during the first half, with total assets increasing 10.8% to Ksh81.68 billion ($628.3 million) from Ksh73.75 billion ($567.3 million) at the end of 2025.

Financial investment assets accounted for much of the increase, rising to Ksh63.65 billion ($489.6 million) from Ksh55.33 billion ($425.6 million). Total equity increased 4.6% to Ksh12.4 billion ($95.4 million), while total liabilities climbed to Ksh69.29 billion ($532.9 million). Insurance contract liabilities, the group’s largest liability category, increased to Ksh60.97 billion ($468.9 million) from Ksh52.68 billion ($405.2 million). Borrowings, however, declined to Ksh4.1 billion ($31.5 million) from Ksh5.02 billion ($38.6 million).

Cash and cash equivalents at period end stood at Ksh14.4 billion ($110.7 million), compared with Ksh12.91 billion ($99.3 million) at the start of the year. The group generated Ksh3.08 billion ($23.7 million) in net cash from operating activities during the six months.

CIC Group strengthens diversification strategy

The H1 performance comes as CIC Group executes its 2026–2030 strategy, with a greater emphasis on investment management, digital transformation, product diversification and financial inclusion.

The group recently launched CIC Impact, a microinsurance business targeting underserved customers in Kenya’s informal sector. Its regional operations also contributed to topline growth, with insurance revenue rising 5% in Malawi and 71% in South Sudan, although Uganda recorded a 31% decline during the period.

CIC Group said its focus remains on strengthening its subsidiaries, expanding financial inclusion and creating sustainable shareholder value. The group’s H1 results show a sharp improvement in overall profitability, but also underscore its growing reliance on investment and diversified income to offset weaker underwriting returns.