Kenya's CIC Insurance plans Malawi expansion, sets bonus issue

NAIROBI, March 12 Wed Mar 12, 2014 4:13am EDT

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NAIROBI, March 12 (Reuters) - Kenya's CIC Insurance plans to issue bonus shares, increase its share capital and expand its business to Malawi this year after reporting a marginal rise in full-year pretax profit.

The insurer, in which Co-operative Bank is the single largest shareholder, said in a statement that it plans to double its share capital to 6 billion shillings ($69.52 million) and issue one bonus share for every five shares held.

Pretax profit rose slightly to 1.67 billion shillings from 1.65 billion shillings a tear earlier, largely because of a modest rise in investment income against rising operating costs, commissions and claims.

Investment income rose 7 percent to 1.7 billion shillings, while claims increased by 30 percent to 6 billion shillings and operating rose 20 percent to 2.4 billion shillings.

Earnings per share ticked up to 0.67 shillings from 0.64 shillings in 2012. The insurer said it would pay a dividend of 0.10 shillings per share, unchanged from the previous year. ($1 = 86.3000 Kenyan shillings) (Reporting by James Macharia; Editing by David Goodman)