CfC Insurance Holdings Limited (CfCIH) held its first Annual General Meeting (AGM) during which they announced a consolidated pretax profit of KSh 950 Million for the year ended 31 December 2011 up from KSh 260 Million in 2010.  CfCIH, which was listed at the Nairobi Securities Exchange (NSE) on 21 April 2011, is the holding company of CfC Life Assurance Company Limited (CfC Life) and The Heritage Insurance Company Kenya Limited (Heritage).

Speaking while announcing the results at the first AGM since the NSE listing, Mike du Toit, Regional Managing Director, Liberty Eastern Region said the improved performance is mainly the result of the success of operational strategies that the Group has implemented in line with its objectives.

“In particular, Heritage has shown a significant growth in its profit after tax as a result of a sound underwriting and claims management which the Company has been implementing over the last few years.  CfC Life’s profitability also improved appreciably due to effective management of policyholder benefits,” added du Toit.

The results for the Group show strong resilience in a market that was characterized by a declining stock market, rising interest rates and inflation that negatively affected the valuation of the Group’s financial investments leading to a reduction in the Group’s comprehensive income.  In particular, the loss on the fair valuation of available-for-sale financial assets in 2011 was KSh 1.5 Billion compared to a gain of KSh 1.6 Billion in 2010.  The prior period financial statements were also adjusted to take into account corrections in the valuation of some financial investments and actuarial liabilities in CfC Life .

The Group is also in the process of completing the rationalization of its businesses that will see the Heritage book of Life business transferred to CfC Life, subject to compliance with all regulatory and legal requirements.  The holding company CfCIH will undergo a name change to "Liberty Holdings Kenya Limited” for simplification, differentiation and to allow for economies of scale in its brand building efforts.

Press Release.

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