CIC Insurance Group recently announced plans to list on the Nairobi Securities Exchange (read our article on this here).

The company has received the necessary permission from the Capital Markets Authority. It says on its website: “In a letter to CIC Insurance Group, CMA Chief Executive, Stella Kilonzo, says the Authority has been satisfied that the details in the firm’s Information Memorandum are adequate for investors to make informed decisions.”

CIC Insurance Group comprises CIC General Insurance Limited, CIC Life Assurance Limited and CIC Asset management Limited. The company has a 33 year history and is the leading co-operative insurer in Africa. One of their prominent products include M-Bima, a mass market insurance premium payment instrument that rides on mobile money platform M-Pesa to facilitate payment.

A look at the books in 2011

The company's gross premium income increased by 55% from KES 3.0 billion to KES 4.6 billion with net earned premiums increasing 67% from KES 2.0 billion to KES 3.4 billion. Claims expenses increased 63% from KES 1.2 billion to KES 1.9 billion with investment and other income increasing by 76% from KES 184.8 to KES  324.4 million. Gross profit income for long term business increased by 35% from KES 1.6 billion to KES 2.2 billion and net premiums increased by 29% from KES 1.5 billion to KES 2.0 billion. In 2011 the company raised additional capital through a rights issue that was carried out by private placement and a total of KES 1.5 billion was raised.

The listing of CIC Insurance Group shares, through price discovery (which we elaborated on here), is potentially very beneficial to current shareholders. The 2.1 billion ordinary shares will be on sale for KES 3.5 each, and shareholders stand to benefit from share price appreciation if the share price rises above the KES 3.5 upon the eventual listing.

CIC Insurance will be the 6^th insurance company and the 61^st company listed on the Nairobi Securities Exchange.