, NAIROBI, Kenya, Jul 18 – CIC Insurance Group shares began trading on the Nairobi Securities Exchange (NSE) on Wednesday after a bell ringing ceremony graced by President Mwai Kibaki.
The insurer listed 2.1 billion shares by introduction at the Main Investment Market at a price of Sh3.50.
“This is a great day for CIC Insurance Group. It is going to be our first day as a publicly traded company. We are happy to be the second to be listed at the exchange this year, “said Nelson Kuria the firm’s Chief Executive Officer.
Currently, the company has 3,878 shareholders comprising Co-operative Insurance Society Limited (CIS) as its strategic shareholder with a 74.3 percent stake and individual investors contributing the remaining 25.7 percent.
“The exchange welcomes this additional association with the cooperative movement through CIC. We also urge others in the sector to provide micro Insurance services to the cooperatives and low income market segments in Kenya,” said the NSE Chairman, Eddy Njoroge.
Last year, the group’s shareholders resolved to increase its share capital to Sh3bilion from Sh1.2 billion by creating 90 million ordinary shares.
On his part, President Kibaki called upon insurance companies to develop innovative products that will attract Kenyans to take insurance cover adding that the insurance uptake by Kenyans is still very low.
“I also encourage Kenyans to think proactively about the future of their loved ones and take steps to ensure that their financial security is guaranteed. One of the ways of doing this is by taking an insurance cover, “said Kibaki adding that, “many Kenyans are reluctant to take insurance covers which is tied to cultural beliefs, aimed at discouraging people to think about death.”
In 2011, CIC Insurance pre-tax profit grew by 30 percent from Sh605 million to Sh787 million in 2010.
CIC becomes the 60 company to be listed at the Nairobi securities Exchange and the 6th insurance company to be listed.