CIC Group shares lost more than 17.9 per cent of their value after the insurer blamed non-recurrence of one-off fair value gain of Sh1 billion and elevated claims for its profit warning.
In an unscheduled trading update, the insurer said net profit for 2025 would be well below the profits reported during the same period in 2024, when it recognized a Sh1 billion fair value gain on its Kiambu land.
The company said:
“In the 2024 financial year, the Group recognized a one-off fair value gain of approximately KES 1 billion arising from the revaluation of its Kiambu land property in accordance with IAS 40 – Investment Property. This gain materially elevated the Group’s reported profit for 2024 and does not recur in the 2025 financial results.”
The insurer also blamed a rise in claims as another reason for the expected drop in profits.
The company said:
“In addition, the Group experienced elevated claims during the period, which reflects normal volatility within the insurance cycle and remains within expectations.”
The shares, which were 35 per cent up this year before the profit warning, fell 17.9 per cent to Sh5.04 closing the day as the biggest loser.
CIC Group recently sold a portion of its Kiambu and Kajiado parcels of land for Sh1.8 billion, a transaction expected to boost its capital position.
