Botswana Insurance Holdings (BIHL) says its ten year performance has brought the company to the enviable position where they returned P211 million in Profits before Tax (PBT) to the shareholders in 2005, to a significant P722 million in profits before tax in 2015, which is a threefold improvement.
Information contained in the 2015 annual report is that 2015 was a truly worthwhile year in the area of strategy implementation at BIHL. The Group said its twin strategy of growth and profitability yielded pleasing results in the short-term, creating a good foundation for future performance. The company stated that achievement of strategic targets during the year was a result of disciplined implementation by all the subsidiaries of the Group.
“Our five pillar strategy served as a guiding framework at every point of strategy execution,” reads the statement.
In 2015, BIHL said it achieved significant milestones in the Group’s broader financial services diversification goals, both in Botswana and the region. The Group has increased its investments from the time Gaffar Hasam was appointed CEO in 2012 and now under Catherine Lesetedi-Letegele who took over in 2016 the intention is to monitor the investments.
Stated in the annual report is that locally, BIHL acquired 50 percent shareholding in Teledimo (Pty) Ltd, which owns 100 percent of Botswana Insurance Company Limited, the oldest and largest short term insurer in Botswana. The company said participation in the short-term industry is expected to expand BIHL’s income stream to include the short-term insurance industry.
The report indicated that another significant investment during the year was a 25.1 percent acquisition of stake in Nico Holdings Malawi, which operates in 5 countries; namely Malawi, Zambia, Tanzania, Uganda and Mozambique.
“The Group will monitor these investments closely in order to extract value from these. BIHL further increased shareholding in our associate, Funeral Services and this business has consistently produced good results and is expected to continue this performance trend,” reads the statement signed by Chairperson Batsho Dambe-Groth.
She further stated that as a Group of companies, BIHL and its subsidiaries have worked as a team to support growth and efficiencies in other parts of the business. She added that existing strengths and experience in the areas of leadership, customer service and selling, results in growth of the smaller businesses and sustenance of the more mature subsidiaries.
A look at the numbers on BIHL’s consolidated earnings results for the full year ended 31 December 2015 show business growth and total revenues were P4.4 billion, up from P2.9 billion in the 2014 financial year. Profit before tax was P722 million (up from P627 million). Profit attributable to equity holders of the parent company was P595 million up from P500 million in 2014. Dividend per share increased by 40 percent to 122 thebe per share.