The Botswana Insurance Holdings Limited (BIHL), Botswana’s largest insurer by market value, posted good half year unaudited results for the six months ended June 2013, a significant improvement compared to the prior year.
The profit before tax surged to P237 million from P171, 9 million last year registering a 38 percent increase whereas group profits before tax equally grew to P288.6 million for the period under review.
The group reports P2.9 billion embedded value up by P200 million compared to P2.7 billion in December 2012. This was primarily driven by excellent operating earnings from most business lines.
The first half of the year was marked by significant increase in the investment income which grew by 38 percent to P24.9 million, above prior year following redemption of debentures from associate companies.
However, the group consolidated net premium income fell 14 percent on the half year to P867.3 million from P1, 010,115 million for the year earlier period.
The annuity line that contributes substantially to the group’s single premium income underperformed for the period under review compared to the prior year.
All the business segments contributed positively to profitability with under achievement on the group life line which continues to be under aggressive competitor pressure.
BIHL is the holding firm company for Botswana Insurance Fund Management (Bifm) and Botswana Life insurance firm, Sure, Legal guard, and other associates.
The group remains in a very strong position with respect to capital requirements with required capital covered 6.3 times.
Gaffar Hassam, the Group Chief Executive Officer said he is pleased with results considering the unstable operating environment. Looking ahead, the group continues to focus on key twin strategies of growth and profitability and build on achievements of the first half. However, uncertainty in the global markets is expected to continue to affect the results.