Monday, August 15, 2022

BIHL eyes customer retention as it closes on Vaka successor

Botswana Insurance Holdings Limited (BIHL) Acting Group Chief Executive Officer Gaffar Hassam says there is need for improving operational efficiency and performance as well as focusing on quality of new business and customer retention.

Delivering the group results on Tuesday for the six months ended June 30, Hassam said BIHL will continue to improve capital efficiency and capital allocated to business units in a manner which will achieve optimal targets.

According to Hassam, return on shareholders’ assets was P199.7 million compared to P130 million in the same period last year. He said the group will pursue profitable growth opportunities, and value-adding strategic initiatives, to efficiently redeploy discretionary capital.

He said operating profit increased by 12 percent, adding that it was because of good operational results from both the life insurance and asset management businesses. Hassam stated that the group experienced increased sales volumes, prudent underwriting and also good management of expenses.

“Share of profits of associates increased due to increase in the shareholding of associates,” said Hassam.

The business reported an operating profit of P137 million, which is 22 percent higher than last year. He said there is 52 percent decrease in cash flows due to funding of the new initiatives in the Group and after payment of dividend of P115.2 million.

Hassam said the group had challenges such as effective and efficient redeployment of discretionary capital and customer retention as well as profitable growth opportunities.

“Botswana has not escaped from some global headwinds and June inflation numbers were higher than anticipated,” said Hassam.

The revenue net premium income increased by 47 percent to P929.4 million while the assets under management increased by 7 percent to P18.8 million.

Meanwhile, BIHL Group Board Chairperson Batsho Dambe-Groth said the group is at an advanced stage of recruiting the BIHL Group CEO.

She stated that the post is a high profile job which requires a most relevant candidate. Dambe-Groth, however, did not reveal how many candidates they have shortlisted for the post. She stated that the board has shortlisted candidates who will be interviewed after which the qualifying candidate will be given the offer.

“We do not know why people anticipate the delocalisation of this post; we will fully inform you at the right time after the appointment,” said Dambe-Groth.

The BIHL Group top post has been vacant for six months now since the resignation of Regina Sikalesele-Vaka on March 31.

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