11 May 2021GABORONE - True to its theme of demonstrating resilience in the 2020 financial year, the Botswana Insurance Holdings Limited (BIHL) Group, has announced a pleasing performance at both Group and Subsidiary level. BIHL Group remained a strong bull in the financial services sphere, despite hostile market conditions and the uncertainties brought on by the COVID-19 pandemic and other macro-economic factors, with positive results and performance notably seen in the Asset Management business, Botswana Insurance Fund Management (Bifm)..The Bifm group achieved pleasing results for the year 2020. Operating profit increased by 11% year on year. This good performance is attributable to an improved Assets Under Management (AUM) position for the Botswana business from the previous year following the acquisition of new mandates, hence higher fee income. Costs were well managed. The Zambia business showed a decline of 22% because of the Kwacha depreciation and lower investment management fee rates. Asset Under Management for the year were P30.3 billion including Zambia’s P3.1 billion and Bifm Unit Trust at P1.8 billion..Total net income for the asset management business stood at P133,077 million, contributing strongly to the overall Group total net income of P3,249,261 million. Profit for the year by Bifm stood at P45,370 million, set against the total Group profit for the year of P537,509 million..Said the BIHL Group CEO, Catherine Lesetedi, “We are pleased with the healthy set of results from Bifm, and its contribution to the Group performance, particularly when considering the socio-economic challenges that plagued much of 2020. Resolve and strength in this business remains key, anchoring in some ways the Group performance.”.As a Group, the results presented featured unyielding increments in earnings across the board:Net insurance premium income increased by 11% to P2.9 billionRecurring premium income increased by 8% to P1.6 billionFee revenue increased by 11% to P109 millionOperating profit increased by 4% to P393 millionCore earnings increased by 4% to P426 millionProfit attributable to equity holders increased by 22% to P532 millionEmbedded Value increased to P4.78 billion (Dec 2019: P 4.65 billion)The Group is well capitalised, required capital for the group subsidiaries is covered 6.3 times (Dec 2019: 7.1 times)Concluded Lesetedi, “Looking ahead, as a Group, we will continue to efficiently manage and control costs across all businesses to ensure good overall business performance and leverage our Strength in Numbers, agility and innovation, to deliver value for shareholders and indeed stakeholders.”ENDS.