BIHL Group CEO Gaffar Hassam
Listed company Botswana Insurance Holding Limited (BIHL) Group today presented its Abridged Audited Group Financial results for the year ended 31st December 2013. The favourable year end results saw significant improvement in performance as compared to the year 2012.
The Group registered profits after tax of P494,773,000 which was 25% higher than P394,395,000 achieved in 2012. Group profits before tax similarly grew, standing at P579,394,000 in the period under review. This is 19% up on the P485,331,000 achieved in the previous year within the same period.
Embedded value increased from P2,700,868 in 2012 to P3,260,161 in 2013. Embedded value sees the estimate value of the Group excluding the value attributable to minority interests and goodwill attributable to future new business. The embedded value allows for P98.4 million dividends paid during the period.
“We are pleased with what has proven to be a highly favourable and robust set of results. The Group’s assets under management increased by 25% to P27.1 billion with total revenue in the period under review improving quite significantly. Total revenue for the period stands at P4,922,722,000 a 58% increase from the same period in 2012 (P3,112,192,000),” commented BIHL Group CEO, Mr. Gaffar Hassam.
Profit attributable to equity holders increased by 26% to P492.5 million, while core earnings increased by 15% to P310 million. The results note that, with regards to solvency, business is well capitalized. Required capital is covered 7.7 times, an increase from that of December 2012 which saw a cover of 5.8 times.
Basic earnings per share for ordinary equity holders stands at 183 thebe from 146 thebe in the previous year, an increase of 25%. Diluted earnings per share, moreover, increased by 25%, from 145 thebe in 2012 to 181 thebe in 2013. Operating profit increased by 19% to P277.3 million, with operating profit by the life business alone increasing by 15%.
Investment income, which comprises dividend income and interest income, decreased by 14% due to the prevailing low interest rate environment. The Group’s investment income has decreased from P628,915,000 in 2012 to P595,111,000 in 2013. Investment surpluses increased significantly following changes to key investment strategies that resulted in very satisfactory capital gains. This income line, the Group notes, remains susceptible to market volatilities. The period saw good investment returns of P129,854,000 received, as compared to the P57,687,000 investment returns received the previous year.
“2013 saw an improvement in the local and global economy, and our results are consistent with this recovery. As the global economy continues to be revived, and on the back of a strong set of financial results for 2013, we will continue with our twin strategies of growth and profitability as we strive to ensure the greatest value for our shareholders,” concluded Mr. Hassam.
Download the Audited Results here
