NAIROBI, Kenya, Aug 30 – CfC Insurance Holdings has announced a 22.87 percent drop in pre-tax profit, recording Sh341 million for the half year ending June 30, 2012 from Sh442 million realised in the same period last year.
The Regional Managing Director Mike du Toit said the gains were negatively affected by an increase in borrowing costs, inflation driven increases in operating expenses and adjustments made to the underlying insurance liabilities in certain products.
However Du Toit said the firm which is controlled by South Africa’s Liberty Holdings, was optimistic that its performance will improve in the second half, as it continues to implement its growth strategy.
Comprehensive Income for the period increased from 624 million in 2011, to Sh690 million for the first half of 2012.
Consolidated premium revenue grew by 13 percent from Sh3.1 billion to Sh.3.5 billion while the investment income increased by 6.5 percent from Sh939 million to Sh1 billion.
CfC Insurance Holdings is the holding company of CfC Life Assurance Company Limited (CfC Life) and The Heritage Insurance Company Kenya Limited (Heritage).
The group has also announced plans for rebranding in line with Liberty Corporate brand guidelines to allow for simplification, differentiation and economies of scale in its brand building efforts.
The majority of these changes are associated with improvements to the current distribution channels, introduction of new alternative distribution channels for products, introduction of differentiated products, process re-engineering, management of costs and acquiring appropriate new technology that is expected to enhance service delivery to customers and intermediaries.