CIC Insurance Group net earnings have raced past its entire 2025 profit in the first six months of this year, boosted by investment income and land sales despite underwriting revenue falling by more than half.

In the half-year ended June, the group’s net profit rose 70.4 percent to Sh1.08 billion, more than doubling the Sh513.82 million it earned in the whole of last year.

The 70.4 percent growth was supported by stronger investment returns and increased income from other business segments. Investment return rose to Sh3.96 billion from Sh2.75 billion a year earlier, helping push up the net investment revenue.

The group bucked the trend of falling investment returns in the industry by growing its net investment income by 11 percent to Sh1.67 billion. It also benefited from Sh962 million booked from the sale of part of its land, from which it booked a gross margin of Sh341 million.

“We are pleased with the growth trajectory of our business and remain confident in our ability to scale even greater heights,” said Patrick Nyaga, group managing director at CIC.

The revenue from land sales as well as the pharmaceutical business more than compensated for the 67.2 percent decline in insurance service results to Sh42.03 million from Sh128.23 million due to elevated claims and reinsurance expenses.

CIC peers, including Britam Holdings, posted a decline in net investment income on the back of a declining yield curve but were saved by a recovery in underwriting performance. Insurers invest premiums in Treasury Bills, Treasury Bonds and other fixed income assets and therefore when returns on such investments are falling it results in slowed growth in investment income.

The insurer’s asset management unit generated Sh1.04 billion in revenue from asset management services compared to Sh829 million in June 2025, helping CIC avoid the industry-wide softening of investment income.

Insurers with stronger asset management units that have diversified into classes such as equities have enjoyed increased returns in an environment of reduced returns from government paper.

CIC General insurance business posted a 33 percent rise in pre-tax profit to Sh734 million as the growth in insurance revenue outpaced the growth in claim costs. Over the same period, pre-tax profit of CIC Asset Management rose by nine percent to Sh526 million as that of the life insurance unit retreated to Sh190 million on higher claims.

Across the industry, top players including Jubilee Holdings, Britam and Old Mutual have grown their half-year earnings.

Jubilee Holdings maintained an interim dividend of Sh2 per share after half-year net profit rose by 12.7 percent to Sh3.45 billion, helped by the life insurance business.

Britam Holdings' net profit rose 53.3 percent to Sh2.666 billion, helped by increased underwriting performance and reduced expenses.

Old Mutual Holdings posted a sharp turnaround in its half-year performance, with net profit rising to Sh882 million from Sh5 million a year earlier as the exit from loss-making insurance lines and cost controls boosted earnings.

palushula@ke.nationmedia.com