CIC Insurance Group whose shares were listed at the Nairobi Securities Exchange in July has posted a 17 percent drop in pre-tax profit to 470 million shillings for the six months to June from 568.7 million shillings in the same period last year.

CIC Management has said that earnings were hurt by higher claims and benefits to policyholders which rose 61 percent to 2.1 billion shillings compared to 1.3 billion in the same period last year.

Half-year margins were also hurt by additional costs associated with listing at the stock market which were at 112 million shillings.  Gross premiums written in the period however climbed 26 percent to 4 billion shillings from 3.1 billion shillings mid last year.

CIC shares are currently trading 30 cents above their starting price of KES 3.50 at the NSE just over one month ago. This month the shares have been on the decline, losing 20 percent to trade below 4 shillings per share over the past two days and at KES 3.90 at  Thursday's close.

Kenya’s fifth largest insurance company expects a positive financial outcome in the second half of the year due to the  stabilized economy and non-occurrence of extra costs unlike in the first half year with the listing.