Sterling performance by Botswana Life Insurance Limited (BLIL), the life insurance subsidiary of Botswana Insurance Holdings Limited (BIHL), boosted the Group’s financial performance and contributed to a number of significant financial milestones.
Information contained in BLIL’s latest audited financial results for the year ended 31 December 2014 shows that the subsidiary, led by Chief Executive Officer (CEO) Catherine Lesetedi-Letegele, recorded a 6 percent growth in premium income over prior year from P1.84 billion to P1.95 billion with all lines contributing to the positive movement.
The company’s individual life new business Annual Premium Equivalent (APE) grew 16 percent while operating profit grew 15 percent year on year to P 317.5 million from P275.7 million. The value of new business, which represents the present value of future profits from new business premiums written during the year, also grew by an excellent 40 percent year on year. Unit acquisition costs also reduced by 13 percent compared to last year due to improved new business volumes and disciplined expenditure. Unit maintenance costs grew 1 percent over prior year in line with operating expenses.
“Our vision is to be the global benchmark life insurance company and this we articulate through our different strategies. This is challenging but also very exciting for us as it keeps us engaged as we innovate and change the way we do things,” said Lesetedi-Letegele.
She added that success is not only about financial performance as, for them at Botswana Life, it is also about how they impact the communities that support the business and the general community at large. She said the achievements of the company were simply a culmination of the collective efforts of the lead team, staff, business partners as well as the support of the BLIL board and the BIHL Board of Directors.
“The use of the Life Rewards card by our clients as a convenient way to receive their benefits has gained popularity with the uptake doubling since June 2014, inching close to 34,000 cards in issue,” she stated.
The BLIL CEO further said the highlight of innovations at the company has been achieved as clients are now able to enjoy quick turnaround times in accessing benefits. Innovation also provides the previously unbanked an opportunity to access banking services.
She revealed that following conclusion of the Sekgantshwane 2014 strategy, management crafted a five year strategy which is focused on steering the company towards greater growth.
“We firmly believe that implementation of this new strategy will focus the company on achieving real growth on all its key performance indicators despite growing competition and muted economic growth,” she said.
Meanwhile, BIHL Group said this year marks a significant milestone for the Group as it celebrates 40 years of contributing to the financial services industry as well as development of the country. The company said throughout the years it has been providing innovative insurance and investment solutions to its clients, proven by their successful track record, coupled with consistent honouring of their promises to clients.