The BIHL Group Board Chairman, Mrs. Batsho Dambe-Groth
The BIHL Group Board Chairman, Mrs. Batsho Dambe-Groth|Source: The BIHL Group
Press Releases (The BIHL Group)

Stronger Together with Positive Earnings Across the Board

By Lorraine Dudu Kinnear

|

04 September 2020

GABORONE – The Botswana Insurance Holdings Limited (BIHL) Group shared their financial results for the half year ended June 2020 before stakeholders at Avani Gaborone Resort & Casino on the 2nd of September 2020. One of the country’s largest financial services groups announced a stellar set of financial results with positive earnings across the Group for the interim period ending June 2020. The key highlights include:

  • Operating profit increased by 17% to P202 million

  • Core earnings increased by 7% to P203 million

  • Assets under management increased by 8% to P30.5 billion

  • Profit attributable to equity holders increased by 45% to P264 million

  • Embedded value increased to P4.69 billion. (June 2019: P4.38 billion)

  • Return on Group Embedded Value is 12.4% (June 2019: 9.5%)

The embedded value allowed for P214 million paid as dividends during the period. The BIHL Group Chairman, Batsho Dambe-Groth remarked: “We are pleased to share a strong set of financial results. This past quarter is one that marked an enhanced focus on our commitment in ensuring progress, growth and stability across all our Subsidiaries, against the backdrop of what has been one of the most difficult market periods in decades. As the Group, increased value has always been our crucial objective and nothing has changed in this regard. We will continue to work towards ensuring positive returns and deriving value for our loyal and valued shareholders.”

The Group’s Subsidiaries, Botswana Life Insurance Limited (Botswana Life), Botswana Insurance Fund Management (Bifm) and Botswana Insurance Company (BIC) all noted satisfactory returns for the period under review. Botswana Life saw an increase in operating profit of 17% to P195 million; an increase of 10% in recurring premium income to P781 million as well as a decline in total new business of 12% which was compensated for by a good product mix with the proportion of risk products increasing compared to prior periods. Bifm noted an 8% increment in assets under management to P30.5 billion driven by higher management fees and lower administration with the Bifm Unit Trusts posting a 15% growth in operating profit from the previous year. The short-term insurance business of the Group, Botswana Insurance Company Limited, as well the Group’s other associates, Funeral Services Group, Letshego Holdings Limited Group and NICO all reported significantly better results in comparison to the previous year.

Dambe-Groth said, “As a Group founded upon leveraging our Strength in Numbers, our twin strategies of growth and profitability have continued to yield positive results, enabling us to prevail against all odds and ensure our continued progress and growth. We will continue to drive cross-subsidiary collaboration and growth from all ends of the business for we are indeed stronger together. Where we all deliver on excellence, the mark is greater, and the impact bigger as we have observed with this year’s pleasing results.

Overall, the Group remains well positioned in terms of capital management and solvency. This, as always, was taken into consideration when resolving the interim dividend. In determining the dividend, the Board ensures that its capital position remains solid and aligned with future capital requirements whilst sustaining healthy levels of Return on Group Equity Value. The Directors have resolved to award a final dividend for the year of 57 Thebe per share (gross of tax).

ENDS.

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