CFC INURANCE HOLDINGS AFTER TAX PROFIT SURGES 73.2%

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CFC Insurance Holdings Limited (CFCIH) have released their results for the Half Year period ending 30^th June 2011

Profits surged with Profit Before Tax up 75% to 441.8 Million

Net Premium Revenue rose an impressive 53.9% to 2.1 Billion

Profit After Tax grew from 193.2 Million to 334.5 Million, an increase of 73.2%

	H1 2010  Kshs.	H1 2011  Kshs.	% CHANGE
NET PREMIM REVENUE	1.4 BILLION	2.1 BILLION	+53.9%
TOTAL INCOME	2.2 BILLION	3.3 BILLION	+54.3%
NET BENEFITS AND CLAIMS	1.04 BILLION	1.4 BILLION	+37.8%
OPERATING PROFIT	228.8 MILLION	413.7 MILLION	+80.8%
PROFIT BEFORE TAX	252.5 MILLION	441.8 MILLION	+75%
PROFIT AFTER TAX	193.2 MILLION	334.5 MILLION	+73.2%
EARNINGS PER SHARE	0.42/=	0.65/=	+54.8%

Commissions nearly tripled from 82 Million to 231.8 Million

CFCIH saw its Investment Income surge by 94.6% to 939.4 Million

Total Expenses and commissions registered a rise of 66.8% from 886.4 Million to 1.48 Billion

Other operating expenses increased by an equally high 55.8% to 1.04 Billion

Management said that the improved performance was a result of operational strategies delivering on the synergy objectives which included last year’s acquisition of Heritage Group and the listing of CFCIH ‘s shares at the NSE this April

The group however realised a significant reduction in Total Comprehensive Income from 1.2 Billion, to a loss of 959 Million. This was blamed on a decline in the fair values of equities listed at the NSE and rising interest rates that negatively affected the valuation of the group’s investments in Government bonds

The Groups operations are still undergoing significant change and will be banking on the improvement of distribution channels as well as introduction of new alternative distribution channels to ensure shareholder value

This is an impressive performance from CFCIH, though the continuing dwindling fortunes of the NSE might knock a bit off their performance at Full Year

The company now trades at a lower Forward P.E of 8.1