12 Mar 2020

The Botswana Insurance Holdings Limited (BIHL) Group has recorded  growth for the year ended December 31 2019 with net insurance premium income increases of 11 per cent to close the year with a dividend pay-out of 59 thebe per share and a special net tax dividend pay-out of 11 thebe.

Speaking at the presentation of the results on March 11 in Gaborone, the Group Chief Executive Officer, Ms Catherine Lesetedi said the group would be paying out a dividend of P 369 million to shareholders which was less than P457 million paid in dividends at the close of December 2018 financial year.

She said the special net tax dividend was from clearings in offshore investment which had performed relatively well in the reporting period while the  growth for 2019 was attributable to value derived from new businesses.

She said the micro-economic fundamentals of the group remained strong although there were challenges noting that fee revenues decreased by 8 per cent to P98 million compared to 2018 while operating profits remained flat at P376 million.

She also added that the cost per capita of doing business decreased by P6 million to P380 million in 2018.

According to Ms Lesetedi, 2019 was characterized by below level business volumes and aggressive competitor pricing on group schemes while there were pressures on asset management fees and a deterioration of group schemes claim experiences.

However, Ms Lesetedi noted that claims and benefits had grown to P1.6 billion in the reporting period noting that this was a significant achievement and value for customers.

She also noted that the group had achieved gains in returns to policyholders of over P7.3 billion.

She also added that the Group’s five -year diversification strategy would continue strengthening existent businesses to leverage capital and reduce excessive risks to sustain core businesses while the whole group would continue being client centric. ENDS