Listed company Botswana Insurance Holdings Limited (BIHL) Group today presented its Unaudited Group results for the six months ended 30 June 2013. The half year results saw significant improvement in performance as compared to the same period in 2012.
The Group registered profits of P237 million which was 38% higher than P171.9 million achieved within the same period in 2012. Group profits before tax similarly grew, standing at P288.6 million in the period under review. This is 37% up on the P210.5 million achieved in the previous year within the same period.
Embedded value increased from P2.7 billion in December 2012 to P2.9 billion in June 2013. Embedded value sees the estimate value of the Group excluding the value attributable to minority interests and goodwill attributable to future new business.
“This has proved to be a highly favourable and robust set of half year results. We are pleased to note that the Group’s assets under management increased by 11% to P23.9 billion with total revenue in the period under review significantly improving. Total revenue for the period stands at P2.9 billion, a 64% increase from the same period in 2012 (P1.7 billion),” commented BIHL Group CEO, Mr. Gaffar Hassam.
Profit attributable to equity holders increased by 38% to P235.1 million, while core earnings increased by 38% to P157.5 million. The results note that, with regards to solvency, business is well capitalized. Required capital is covered 6.3 times, an increase from that of December 2012 which saw a cover of 5.8 times.
Earnings per share for ordinary equity holders stands at 87 thebe, from 64 thebe in the previous year. Operating profit increased by 23% to P132.6 million, with Botswana Life contributing 44%. Profit attributed to equity holders increased by 38% to P235.1 million.
Moreover, the Group’s investment income has proven to be significantly above that of the previous year following redemption of debentures from associate companies. Investment income, which comprises interest and dividend income, increased by 308% to P24.9 million. Investment gains, moreover, increased by 398% to P43.5 million due to good investment returns received over the period.
Concluded Mr. Hassam, “The volatile economic climate is already well documented and even well understood as much as is possible. Against that background global markets are expected to continue to affect future results. However, the strength of our strategies of growth and profitability along with the strong achievements of the first half of the year have us well positioned looking forward.”