Monday, October 3, 2022

BIHL’s Net Incomes, news business on the red

The country’s largest diversified financial services group, Botswana Insurance Holdings Limited (BIHL), last week reported decline in incomes attributable largely to performance of business associates during the interim period that ended 30 June 2022.

According to the group’s latest financials (H1: 2022), the share of profit of associates and joint ventures net of tax decreased by 5 percent to P117.5 million (H1 2021: BWP123.9 million) while the Value of new business also decreased by 12 percent to P71 million. On year-on-year, BIHL’s total new business declined by 7 percent from P812 million to P755 million due to what the group says is “difficult economic conditions”.

The financials also shows a seven percent decline in net insurance premium income to P1.45 billion for the period under review (H1 2021: P1.56 billion) as well as a decrease in Core earnings by as much as 69 percent to P205 million.

“Single premiums declined by 14% from P730 million in June 2021 to P616 million signalling the impact of inflationary pressures and increased interest rates on household income which saw reduced credit life premiums as the banks tightened their lending”, reads part of the notes accompanying BIHL’s H1:2022 financials.

The Botswana Stock Exchange (BSE) quoted group is made up of Botswana Life, Botswana Insurance Fund Management and Botswana Insurance Company.

According to the group’s financials, published last week, its Fee revenue went up by 10 percent reaching P67.8 million from P61.6 million while Net profit increased by 31 percent to P266.2 million (H1 2021: BWP203.5 million).

Meanwhile the group’s balance sheet has since expanded by 4 percent to P18.0 billion (H1 2021: P17.30 billion) giving room to the directors to declare a net dividend of 65 thebe per share. During the period under review the group says Earnings per share attributable to ordinary equity holders of the parent were 95 thebe (H1 2021: 72 thebe).

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