CIC Insurance Group has issued a profit warning for the financial year ending 31st December 2019. The insurance group projects that the company’s profits will be more than 25% lower than last years’ net profits.
“Based on the projections of the remainder of the year, we expect net profits for the 2019 financial year to be lower by more than 25% of the net profit reported in 2018. The projection is based on indicative financials of the company with regards to the year ending 31st December 2019. Details of the company’s financial position will be published by the end of March 2020,” read a CIC profit warning.
According to a company statement, the insurance giant will not meet its anticipated profit because of high claims.
“The company has continued to register topline growth. However, we have experienced adverse claims in some of the key lines of business that have significantly impacted overall group profitability,” reads the profit warning.
The company’s H1 results foretold the possibility of less profits. In 2019 H1, the financial service company posted a 96% drop in profits, attributing the decline to costly life insurance. The company’s operating expenses grew by 5% to 3.2 billion, whereas its net premiums increased by 0.4% to KSh7.112 billion.