12 Sep 2016

Botswana Insurance Holdings Limited (BIHL) Group has maintained a strong financial position with an embedded value yielding a steady increment of two per cent to P4.2 billion from P4.1 billion in the first half of 2015.
The embedded value represented an estimate of the value of the group, excluding the value attributable to minority interests and goodwill attributable to future new business.
Presenting the group’s financial results for the six months ended June 30, 2016, chief executive officer of BIHL, Ms Catherine Lesetedi-Letegele said BIHL remained one of the largest financial services group on the Botswana Stock Exchange (BSE).
She said the results pointed to a continued strong performance across the group, set against a climate of economic volatility, both at home and abroad.
“Worldwide economic growth and subdued levels of employment creation remain topical issues amidst fragility of key players in the global market,” she said.
She indicated that assets under management increased by two (2) per cent to P21billion and the net insurance premium income decreased by 11 per cent to P1.17billion.
Ms Lesetedi-Letegele said the fee revenue decreased by eight (8) per cent to P42 million.
On the value of new business, she said it remained at P78.9million and operating profit decreased by six (6) per cent to P177million.
“Core earnings decreased by three per cent to P208million and profit attributable to equity holders decreased by eight per cent to P264 million,” she said.
 For her part, Ms Batsho Dambe-Groth, BIHL group chair, said increasing shareholder value remains paramount to BIHL’s existence, adding that it is what drives and guides them.
“It is also important to note that although it is our wish to deliver good results, we are not exempt from external forces that put us at risk of a declining shareholder value,” she said.
She said the operating profit for the life business achieved a moderate growth of two (2) per cent to P192million from P188million in the comparative six months.
“This performance came on the back of good performance on recurring premium business which is naturally a more sustainable profit generator in the long term,” she said.
Ms Dambe-Groth further said the general insurance business showed growth in recurring premium income by an impressive eight (8) per cent from P486million in June 2015 to P530million during the first six months of 2016.
She noted that share of profit of associates witnessed an anticipated increment of 38 per cent to P117.6million compared to P85.2million in the first half of 2015. ENDS