CIC Insurance Group posted insurance revenue of Ksh 29.46 billion in the full year ended 31 December 2025, up 11.8% from Ksh 26.35 billion the year before.
The growth stopped there. Profit for the year fell 82% to Ksh 513.8 million, down from Ksh 2.855 billion in FY 2024, as investment returns collapsed and underwriting swung into a loss for the first time in recent memory.
Underwriting Turned Loss-Making
The insurance service result, which measures the core underwriting performance, moved from a profit of Ksh 344 million in FY 2024 to a loss of Ksh 176 million in FY 2025. Insurance service expenses rose 16.4% to Ksh 28.21 billion, outpacing the growth in revenue and eroding the margin that underwriting had previously contributed.
| Metric | FY 2024 | FY 2025 | Change |
|---|---|---|---|
| Insurance Revenue | Ksh 26.35 Bn | Ksh 29.46 Bn | +11.8% |
| Insurance Service Expenses | Ksh 24.23 Bn | Ksh 28.21 Bn | +16.4% |
| Net Expenses from Re Contracts | Ksh 1.773 Bn | Ksh 1.423 Bn | -19.8% |
| Insurance Service Result | Ksh 344.0 Mn | (Ksh 176.0 Mn) | -151.2% |
Net expenses from reinsurance contracts fell 19.8% to Ksh 1.423 billion, which provided some relief, but not enough to offset the underwriting deterioration.
Investment Returns Halved
The bigger blow came from the investment book. Investment return dropped 30.3% to Ksh 6.157 billion, and after netting out finance costs, the net investment result fell 58.2% to Ksh 1.598 billion. That decline stripped out the profit buffer that had historically covered underwriting volatility.
| Metric | FY 2024 | FY 2025 | Change |
|---|---|---|---|
| Investment Return | Ksh 8.836 Bn | Ksh 6.157 Bn | -30.3% |
| Net Investment Result | Ksh 3.819 Bn | Ksh 1.598 Bn | -58.2% |
| Operating Profit | Ksh 4.570 Bn | Ksh 1.754 Bn | -61.6% |
| Profit Before Tax | Ksh 3.994 Bn | Ksh 1.250 Bn | -68.7% |
| Profit for the Year | Ksh 2.855 Bn | Ksh 513.8 Mn | -82.0% |
One area that moved in the right direction was asset management. Revenue from asset management services grew 40.7% to Ksh 1.783 billion, signalling that the business is building a more diversified income stream beyond insurance premiums.
The Balance Sheet Held Up
Despite the profit decline, the group’s balance sheet expanded. Total assets grew 19.1% to Ksh 73.75 billion, driven largely by financial investment assets which rose to Ksh 54.33 billion. Total equity increased to Ksh 11.85 billion from Ksh 11.01 billion, supported by a bonus share issue of Ksh 261.5 million during the year.
| Metric | FY 2024 | FY 2025 | Change |
|---|---|---|---|
| Total Assets | Ksh 61.94 Bn | Ksh 73.75 Bn | +19.1% |
| Total Equity | Ksh 11.01 Bn | Ksh 11.85 Bn | +7.5% |
| Return on Equity | 30.65% | 4.50% | -85.3% |
| Basic/Diluted EPS | Ksh 1.04 | Ksh 0.21 | -79.8% |
Return on equity fell from 30.65% to 4.50%, and earnings per share dropped from Ksh 1.04 to Ksh 0.21, reflecting how sharply profitability contracted relative to the equity base.
Cash Generation Declined but Remained Positive
The group generated Ksh 3.754 billion from operating activities in FY 2025, down from Ksh 6.495 billion in FY 2024. Cash and cash equivalents closed the year at Ksh 12.914 billion, up from Ksh 10.018 billion at the start of the period.
| Cash Flow Item | FY 2024 | FY 2025 |
|---|---|---|
| Net cash from operating activities | Ksh 6.495 Bn | Ksh 3.754 Bn |
| Net cash used in investing activities | (Ksh 176.2 Mn) | (Ksh 253.5 Mn) |
| Net cash used in financing activities | (Ksh 786.7 Mn) | (Ksh 459.5 Mn) |
| Closing cash and equivalents | Ksh 10.018 Bn | Ksh 12.914 Bn |
Dividend Held, Yield Offers Some Comfort
The board maintained the dividend at Ksh 0.13 per share for FY 2025, matching what shareholders received the year before. The board stated it is “pleased to recommend to shareholders the payment of a first and final dividend of Kshs 0.13 per ordinary share.”
At the recent share price of Ksh 4.53, that translates to a dividend yield of approximately 2.9%.
| Dividend Detail | |
|---|---|
| Dividend per Share | Ksh 0.13 |
| Share Price (31 Dec 2025) | Ksh 4.57 |
| Dividend Yield (at Ksh 4.53) | ~2.9% |
| Book Closure Date | 24 April 2026 |
| Payment Date | On or about 9 June 2026 |
The Annual General Meeting will be held virtually on 8 May 2026.
What the Numbers Say
CIC Group enters 2026 with a larger asset base and a diversified income stream that includes a fast-growing asset management business. The challenge is clear: insurance expenses are rising faster than premiums, and the investment portfolio delivered far less in FY 2025 than it has historically. Until the underwriting result turns profitable again and investment returns stabilise, the gap between revenue growth and earnings will remain wide.
