By Yasinta Amos in Arusha
CRDB Insurance Broker (CIB), a subsidiary of the CRDB Bank, has paid a dividend of 1.26bn/- to its parent company-the CRDB Group.
The CIB handles both life and general insurance is reported to be growing at 27 per cent annually.
CIB, Acting General Manager, Wilson Mnzava, made a statement on the firm during a press conference in Arusha, at which he also presented the cheque for the dividend.
"Whenever a subsidiary like ours performs well, we have the moral obligation to pay back part of the profits to the main investor, in this case, our biggest shareholder is CRDB," stated Mr Mnzava.
During the previous fiscal year, they recorded businesses valued at 56.4bn/- an increase of 157 per cent.
"And that was even though the country was battling the coronavirus pandemic which has affected investments, businesses and movements of people and capital," CIB General Manager said.
CIB net profit increase by 153 per cent to 3.6bn/- last year compared to 1.4bn/- in 2019.
"During the year under review, the subsidiary did not borrow from any financial institution or any other third party to meet its day-to-day liquidity management and funding needs," CRDB annual report showed.
The CIB's profit increase was mainly attributed to an increase in net commission income earned by 30 per cent to 8.2bn/- from 6.3bn/- in 2019.
The growth was also due to the 3. 27 per cent rise in premium underwriting to 56.3bn/- from 44.2bn/- in 2019 resulting from the acquisition of new clients and the retention of the existing
portfolio.
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