05 Sep 2018

Botswana Insurance Holdings Limited (BIHL) has recorded an increased operating profit  of 13 per cent to P171 million for the half year ended June 30 2018.

Speaking at a press briefing, Ms Catherine Lesetedi said net insurance premium income increased by 5 per cent to P1.15 billion.

“Fee income increased by 4 per cent to P53 million, value of new business increased by 14 per cent to P66.6 billion and assets under management increased by 3 per cent to P26 billion,” she said.

Ms Lesetedi further said profit attributed to equity holders increased by 8 per cent to P272.7 million, which was evidence to the group’s commitment to the twin strategies of sustainable growth and profitability which continued to drive business despite challenging economic conditions. For her part, chairperson of BIHL Ms Batsho Dambe-Groth said the trading environment continued to be characterised by squeezed liquidity, rising unemployment and none growing incomes.

“These realities have left households increasingly squeezed and in financial strain,” she said, further adding that it presented BIHL with a challenge on the retail side of the business.

She said despite the prevailing environment the business has remained robust throughout its subsidiaries.

Ms Dambe-Groth also noted that BIHL had resolved to award an interim dividend of 60 thebe per share, net of tax.

BIHL recorded dividends of P288 million during the period ended June 30 compared to P188 million in 2017 for the same period.

Ms Dambe-Groth further said BIHL subscribed to the notion that taking the economy to the next level of growth was not just a task that remained on the shoulders of government alone.

“It is for this reason that we aim to contribute constructively to the ongoing dialogue on how to improve the economy as a private sector partner,” she said.

She said even with tough trading conditions, BIHL remained optimistic for better growth with the anticipation of new policy directions based on recent government pronouncements. “We look ahead committed to driving greater profitability and growth in Botswana and across our regional markets. BIHL continues to be a people centric organisation with the aim of creating harmonised products by leveraging on the talents we employ,” she said.

She said BIHL continued to be committed to providing good returns for its shareholders and that during the period under review, BIHL’s share price remained stable. Ends