06 Mar 2014

Botswana Insurance Holdings Limited (BIHL) has posted impressive results for the year ending 31 December 2013.

The Group’s Abridged Audited Group Financial results for the period showed a 25 per cent profit after tax in comparison to what was achieved in 2012. Group profits before tax similarly went up by 19 per cent from the previous year.

The group embedded value at end of the year increased by 21 per cent from P2.7 billion to P3.3 billion. This value was attributed to good operating earnings especially in life business and good investment returns, which were in line with global market performance for the reporting period.

Profit attributable to equity holders increased by 26 per cent while core earnings increased by 15 per cent. With regards to solvency, business was well capitalised with required capital covered 7.7 times.

The basic earnings per share for ordinary equity holders stood at 183 thebe from 146 thebe in 2012, which was a 25 per cent increment. Diluted earnings per share increased by 25 per cent from 145 thebe in 2012 to 181 thebe in 2013 and operating profit by 19 per cent to P277.3 million.

Investment income slumped by 14 per cent due to prevailing low interest rate environment. Nonetheless investment surpluses increased following key changes to key investment strategies that resulted in satisfactory capital gains. The group noted that this income line was susceptible to market volatilities.

BIHL Group CEO, Mr Gaffar Hassam said he was pleased with what had proven to be a highly favourable and robust set of results and reiterated that all the businesses within the group contributed to its success.

Chairperson of the Group, Batsho Dambe-Groth said that this was made possible by the expertise of her board members and BIHL employees for their tireless contribution.

“There has been an improvement in the local and global economy in terms of Life Insurance business in 2013 and BIHL results are consistent with this recovery”, said Mr Hassam.

He also mentioned that they intended to continue with their twin strategies of growth and profitability in order to ensure great value for shareholders.

Mr Hassam also mentioned that in 2007 they made a commitment that every year, one per cent of their profit after tax will be contributed towards the corporate social responsibility (CSR) and was proud to say that they had ploughed back up to P10 million to various projects that had gone into the community.

He also said they remained committed to contributing to (CSR). ENDS