Sunday, April 21, 2024

BIHL anticipates P1 billion PAT  

Botswana Insurance Holdings Limited (BIHL), the leading diversified financial services group in the nation, anticipates a substantial increase in profits, as per its latest market update addressed to shareholders.

The financial services conglomerate, listed on the Botswana Stock Exchange (BSE), projects that its profit before tax (PBT) for the fiscal year ending in December 2023 will surpass the figures reported for December 2022 by an impressive margin of 85 to 95 percent. This translates to a potential increment ranging from P500 million to P555 million compared to the restated profit before tax of P553 million for 2022. This suggests that the pre-tax profit may fall within the range of P1 billion to P1.1 billion.

In the first half of 2023, BIHL recorded a profit before tax of P640 million, marking a remarkable 96 percent surge compared to the same period in 2022. The profit after tax for the six-month period ending in June 2023 stood at P495 million, up from P250.2 million in June 2022.

The notable performance was notably influenced by the gains from the sale of its entire 37.62 percent stake in Funeral Services Group (FSG), resulting in a one-time profit of P142 million during the first quarter of 2023. Additionally, the group achieved significant positive returns on investments within the life business, with such earnings now being affected by the adoption of IFRS17, as investment returns are integrated into annual earnings.

BIHL operates primarily in two core business segments based on its products and services. The life insurance segment is represented by Botswana Life, the nation’s leading life insurance company, which is a wholly-owned subsidiary of the group. The asset management segment is conducted through Botswana Insurance Fund Management Limited (BIFM), also a subsidiary of the group.

Other business segments encompass associate companies such as Letshego, National Insurance Company Limited, Botswana Insurance Company Limited (BIC), Grand Re Tanzania, and BIHL Insurance Company Limited (BIHLIC), in addition to the holding company. 

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