CIC Insurance Group is pursuing more deals with non-governmental organisations (NGOs) in South Sudan to tap extra income from a medical cover business.
Tom Gitogo, the CEO, said the NGO world in South Sudan is driving the economy, with high demand for medical cover.
“We want to work with NGOs to enrol medical cover in South Sudan. This is one of our growth strategy and just last week we won the medical scheme of the biggest oil producer in South Sudan – DAR Petroleum Operating Company Ltd worth $4.3 million (Sh430 million),” said Mr Gitogo during a financial analysts briefing session in Nairobi.
The Nairobi Securities Exchange (NSE)-listed insurer’s CEO said many South Sudanese are also getting medical services in Kenya and Uganda.
South Sudan was the only regional subsidiary which generated income in 2017 — a profit of Sh10 million largely from investment income.
“The problem we have with South Sudan is political instability. For us, we are here to stay, but we’ll not invest heavily for the time being,” said Mr Gitogo. The group’s other subsidiaries are in Uganda and Malawi. CIC also plans to expand to Tanzania once the regional businesses stabilise.
The insurer recorded higher premium and commission making a 154 per cent growth in net profit to Sh478.5 million for the year ended December 2017.
Gross written premiums grew by 20.9 per cent (Sh2.6 billion) to Sh14.95 billion in 2017.
Most of the premiums income was from Kenya, with Uganda contributing three per cent to the gross written premiums, South Sudan and Malawi adding in just one per cent each.