Co-op Bank’s Gideon Muriuki raises stake in CIC

Co-op Bank’s Gideon Muriuki raises stake in CIC

- in Business, News

Co-op Bank’s chief executive Gideon Muriuki has bought an additional 8.6 million shares in CIC Group , cementing his position as the top individual investor in the insurer.

The extra shares, currently valued at about Sh40 million, saw his stake in the Nairobi Securities Exchange-listed firm rise to 5.04 per cent in December 2017 from 4.7 per cent a year earlier.

The new investment, disclosed in CIC’s latest annual report, signals Mr Muriuki’s confidence about the insurer’s prospects.

His purchases coincided with those of CIC’s chief executive Tom Gitogo who bought an extra 2.3 million shares, currently valued at Sh10.8 million, doubling his stake to 0.2 per cent from 0.1 per cent.

The extra investment lifted Mr Gitogo to the tenth position in the list of the company’s top individual shareholders.

CIC’s net profit rose 2.5 times to Sh478.4 million in the year ended December on the back of higher income from investments and fees. Its fees and commission income, for instance, surged 57 per cent to Sh1 billion in the review period.

Its regional subsidiaries are, however, insolvent and are relying on the parent company to meet their obligations having accumulated losses of more than Sh300 million.

“The parent company confirms its commitment to continue giving financial support to the subsidiaries, and it has issued an undertaking in this respect to the subsidiaries,” CIC said in the report.

“Further, the directors have assessed business outlook of the subsidiaries, and they are confident that their financial performance will improve, and they will become profitable in the foreseeable future.” -Business Daily

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