The BIHL Group CEO, Ms. Catherine Lesetedi
The BIHL Group CEO, Ms. Catherine Lesetedi|Source: The BIHL Group
Press Releases (The BIHL Group)

The BIHL Group Announces Upbeat Half Year Results

By Tanlume Enyatseng

|

04 September 2020

GABORONE – The Botswana Insurance Holdings Limited (BIHL) Group continued to perform well in a seemingly uncertain market environment to produce appealing financial results. The leading financial services 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.

Within the period under review, market sentiments began on a positive note with the capital markets displaying optimism and rising global equities in the first quarter of 2020. However, the market environment experienced a few challenges mostly due to the deceleration in global manufacturing, increased US-China trade tension as well as the COVID-19 outbreak which significantly heightened market volatility as it rapidly spread to other parts of the world by the mid-quarter. As a result of the latter, economic activity worldwide was greatly affected - including the local economy with equities and benchmark bond yields falling to an all-new record low in extreme risk-off sentiments.

Despite these market conditions, the BIHL Group exuded resilience with upbeat earnings noting increments in its operating profit which increased by 17% to P202 million. In addition, the BIHL Group saw an increase of 7% in its core earnings to P203 million from the previous year (June 2019).

The BIHL Group CEO, Catherine Lesetedi said: “We are pleased to share a strong set of financial results, marked by progress and advancement in all spheres, more especially amidst tough market conditions. COVID-19 has indeed caused so much uncertainty in the world with the loss of many lives and businesses facing great difficulties and pressure during this time; the BIHL Group was not exempt from this. In the current local and indeed global climate we find ourselves operating in, we are pleased to have persevered and delivered.”

The Group continued on its upward trajectory announcing increments in earnings across the board. Recurring premium income increased by 10% to P812 million and profit attributable to equity holders increased by 45% to P264 million. However, value of new business remaining flat at P66 million and net insurance premium income decreased by 5% to P1.21 billion. The BIHL Group’s return on embedded value increased to P4.69 billion from P4.38 billion from June 2019, allowing for P214 million in dividends paid during the period.

Concluded Lesetedi, “Our focus continues to be on driving growth and profitability well into the future for our Stakeholders. As the Nation’s leading financial services provider, we will continue to defend our position and offer our valued Clients and Stakeholders the highest level of service as we engineer the legacies of our people and continue the African story of success.”

The Group remains well positioned in terms of assets under management and solvency. This was taken into consideration by the Board when resolving an interim dividend of 57 Thebe per share net of tax.

ENDS.

BIHL HALF YEAR RESULTS ANNOUNCEMENT BOOKLET 04.09.20.pdf
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