CIC Insurance Group  posted a Sh259.5 million net profit in the half year ended June, reversing a net loss of Sh335.5 million the year before.

The return to profitability was helped by improved performance in the underwriting business and higher investment income.

Investment and other income, including positive currency movements at its South Sudan subsidiary, more than doubled to Sh2.6 billion from Sh1.2 billion.

Rising prices of listed equities on the Nairobi Securities Exchange contributed to the gains.

The bourse is recovering from a major selloff last year that was inspired by the panic in the wake of the Covid-19 pandemic.

CIC also gained from higher fees in its asset management business which has grown to oversee more than Sh45 billion pooled from a diverse group of investors.

Gross premiums rose to Sh10.7 billion from Sh9.2 billion, with the Kenyan general insurance business posting a 75 percent increase in underwriting profit to Sh447 million.

Chief executive Patrick Nyaga said the company is implementing its new strategy of cutting costs, enhancing efficiencies and lifting margins across the region and in the various insurance operations.

CIC is close to disposing a large part of its land holdings, with the proceeds earmarked for paying down debt and reinvesting the balance in cash-generating assets.