CIC Insurance Group has offered a voluntary early retirement scheme as it undergoes major restructuring. The insurance company announced this in an internal memo to all its staff in Kenya.
Additionally, the memo signed by the group’s CEO, Patrick Nyaga hinted at an unspecified number of layoffs across all the insurers’ companies.
These companies include the Insurance group General Insurance Ltd, Life Assurance Company Ltd and Asset Management Ltd. Further, the memo directed the staff to an intranet site for details.
“Following the Staff Town Hall meeting held today, 3rd November 2023, the circular to all Kenya staff has been placed on the Intranet Jumuika where you can now access and familiarize with the contents,” the memo stated.
However, CIC’s staff were encouraged to contact Human resources and the administration office for more details on the early retirement program.
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Additionally, most companies introduce voluntary early retirement schemes to reduce their wage bill.
CIC financials for 2023
In August 2023, CIC Insurance posted a net profit for the six months ending June of Ksh1.09 billion.
This was a 63 percent growth from the previous year’s net profit of Ksh668 million.
At the same time, the insurer attributed the jump in profits to new initiatives that the firm introduced earlier which focused on customer experience, digital transformation, data analytics, and performance management.
Notably, the general insurance and life assurance earnings grew 21 percent and 23 percent to Sh7 billion and Sh4.3 billion, respectively.
Due to the increase in profits, CIC Insurance Group resumed dividend payout for the first time in four years.
The improved performance saw the insurer’s board propose a payment of Ksh0.13 per share dividend to shareholders. This would lead to a payout amounting to Ksh340 million.
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In recent times, the insurers’ stocks have been on a freefall. According to the Nairobi Stocks Exchange numbers on November 7, CIC shares were traded at Ksh2.00 per unit, representing a 9.09% drop.
