Botswana Insurance Holdings Limited (BIHL) Group recorded a 12% increase in operating profit to P375 million pushed by the underlying contribution of the life business – Botswana Life Insurance Limited’s innovative solutions.
Giving a highlight of the BIHL’s financial results for the year ended 31st December 2018 Group CEO, Catherine Lesetedi revealed that the Group registered an increase in Operating by 12%.
Lesetedi said the introduction of new product offerings into the market were the Group’s twin strategies of growth and profitability, further leveraging on existing resources to introduce new products in the market to continue upward trajectory trend.
“Within the Life Business, Net Premium Income of P2.35 billion was secured with most income lines contributing positively to the growth. Total New Business written decreased by 1% from the prior year; this was mainly due to increased pressure on margins,” she said.
The Embedded value increased by an impressive 3% to P4.42 billion, allowing for P457 million dividends paid during the year.
She continued to say that the Group is proud to be trailblazers of this industry, where they produce game changing products, adding that in an industry where there is need to constantly reinvent for products and services to meet or align with the ever changing needs and wants of the market, it brought joy to BIHL for being on the right target.
She said their five-year strategy that ended on 31st December 2018 has also played a crucial role in the profit success of the Group, leading to diversification of the business by increasing stake at FSG.
She said against all odds Botswana Life has achieved a massive profit of 122%, with the Bifm assets under management increasing by 3% to P27.5 billion with a slight profit decrease of 2%.
The Group’s other key financial highlights are as follows: Core earnings increased by 11% to P383 million and profit attributable to equity holders increasing 6% to P 370 million; Recurring premium income grew by 7% from P 1.21 billion to P 1.30 billion representing a sustainable source of profits in the long term and the value of new business decreased by 1% to P147 million.
Botswana Life’s operating perfomance saw an improvement by 11% from the previous year which was fortified by improved profitability from new business strain reductions on the individual life book and improved claims experience on the credit life book.
BIHL Group chairperson Batsho Dambe-Groth said it is clear that the BIHL Group’s 44 years of doing business have been a period of continued growth, learning and progress.
She said BIHL has managed to sustain itself in conditions under which the capital markets fared less well in the final quarter of 2018 with heightened volatility, escalating trade tensions between the US and China, rising interests rates in the US as well the rising geo political tensions all leading to inhibited investor sentiment.
Dambe said overall, the Group remains well positioned in terms of capital management and solvency, as this was taken into consideration by the Board of Directors when resolving on the final dividend.
“The Board has confidence in the Group’s ability to maintain dividends at this level while ensuring that its capital position remains solid and aligned with future capital requirements whilst sustaining healthy levels of Return on Group Equity Value,” she added.