Sunday, May 26, 2024

BIHL posts remarkable profits amid turbulence

Botswana Insurance Holdings Limited (BIHL) has exalted its subsidiaries for the sterling full year results for the year of December of 2022.

BIHL’s net operating profits were at P 408 million up 132 percent while core earnings stood at P 481 million or 138 percent up, like-on-like.

Botswana Life contributed 54 percent while associates contributed 35 percent of the profits,” Head of Finance Kudakwashe Mukusi said, adding that “Bifm also post strong results.”

He attributed the strong lead by Botswana Life to falling down of mortality rates.

“During pandemic claims reached P 2.4 billion and we had to honor them, as people were burying their loved ones. Now in 2022 were paid out P 2 billion,” he said.

The results painted strong performance in almost all from fronts. The off-shore private equity investments performance was impressive.

The sale of Funeral Services Group (FSG) to Africa Lighthouse Capital also aided the results and prompted it to thank its shareholders a dividend of  119 thebe per share- bring the total over the year to  208 thebe.

However, the company bemoaned the results of Letshego Holdings Limited where it is the second biggest shareholder. It said its operation in Malawi, the unit trusts did shrink.

Its chief executive officer (CEO), Catherine Letegele said the muted economic climate has affected  short term insurance as policies lapsed or were surrendered. She said the move was influenced by number of factors, such, as high inflation and central bank by tightening interests rates.

“The challenges to management is that we have to resolve these as we go into 2023. There were significant lapses and surrenders,” she said.

“We have to do customer education.  What is happening is not a good thing in business, she added.

As part of introspection the company is turning to digital plant form to have a wider footprint. The company will also target the financially excluded mass- that are thought to average  300, 000.

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