Africa-Press – Kenya. Insurance and financial services firm– CIC Group has made a Sh1.8 billion capital injection into its balance sheet following two major land sales which have boosted its cash position.
The Nairobi Securities Exchange-listed firm has successfully sold a 50 acres block neighbouring Tatu city and 100 acres in Kajiado.
The proceeds are aimed at enhancing the insurer’s capital position, as the Insurance Regulatory Authority (IRA) heavily discounts land assets, preferring liquid assets for claim settlements.
The underwriter and its subsidiaries have had a good portfolio of investments in land and real estate. This notably includes prime 200 acres neighbouring Tatu city and 495 acres in Kajiado.
It has been working to unlock value from land holdings that were not generating income, specifically by subdividing large, hard-to-sell parcels into smaller, more marketable plots.
“The two transactions will inject Sh1.8 billion to the balance sheet of CIC Insurance Group Plc further strengthening the liquidity and overall performance of the Group,” managing director and CEO, Patrick Nyaga, said.
The strategy is part of a larger turnaround effort to improve operating efficiency and increase profitability, with the group having previously returned to profitability (Sh668 million in 2021) after a period of losses.
Financial Year 2024 profit after tax nearly doubled to Sh2.85 billion—a 98 per cent increase driven by robust investment income, improved underwriting and digital transformation.
Profit after tax in the first half of 2025 closed at Sh638.5 million with the firm reporting an 8.4 per cent increase in insurance revenue to Sh13.87 billion.
While underwriting costs and claims caused insurance service results to plunge by 88 per cent to Sh128.2 million, significant growth in net investment income (+121%) and asset management (+37%) helped to partially offset these underwriting challenges.
CIC Group this week announced a Sh134 million payout to supermarket chain Naivas, as political violence emerge as a major challenge for firms in Kenya.
