Botswana Insurance Holdings Limited (BIHL) Group’s strategic focus on growth and profitability continues to yield positive returns. This was shared at a stakeholder breakfast held on 2nd September 2015 during which the Group shared its financial results for the six months ended 30th June 2015.
The Group registered profits after tax of P288 million, a 21% increase over the same period last year. Operating profit before tax increased by 25% to P188.6 million, and all business lines contributed positively to this performance. Core earnings increased by 27% to P215 million, while profit attributable to equity holders increased by 23% to P288 million.
Assets under management decreased by 26% but still remain strong at P20.6 billion. Notably, net insurance premium income increased by an impressive 32% to P1.3 billion. Overall, Group expenses were well maintained in line with the continued strategy to manage expenses.
Key initiatives have been underway across the BIHL Group of companies as part of the Group’s strategy to become a fully-fledged financial services operation, and these have proven fruitful in the period under review, according to the Group.
In the life insurance business, management rolled out the new five-year strategy which is focused on steering the company towards sustained growth. Management firmly believes that the company will continue delivering real sustainable growth on all its key performance indicators despite growing competition and muted economic growth. As part of this journey, the Botswana Life brand was reinvigorated in line with the new strategy.
BIHL Group CEO, Gaffar Hassam said in the short term insurance business, 2015 saw the introduction of a new three-year strategy. He said this serves as a road map for guiding the business through recovery, consolidation, and onwards to sustainable profitability.
“The Legal Guard brand identity has also been refreshed to symbolise the rejuvenation of the business. As part of the recovery phase of the strategy, the first half of the year has seen Legal Guard continuing its efforts to reinvigorate the business by increasing sales, improving the customer service experience and enhancing operational efficiencies.“
“Despite the uncertain economic outlook, fragile global growth, and growing direct competition, we remain optimistic about our future prospects and aim to take full advantage of the opportunities in the economy to continue to lead as a broad based financial services group,” added Chandra Chauhan, Member of the Board of BIHL Group.
“This year marks significant milestone for the BIHL Group as we celebrate 40 years of contributing to the financial services industry as well as the development of our country. Throughout the years we have been providing innovative insurance and investment solutions to our clients which we are proud of, proven by our successful track record, coupled with consistent honouring of our promises to clients. This, and the efforts and passions of all of our valued stakeholders, is what has allowed us to become the business we are today, and we have every intention of driving our strategy to ensure continued value well into the future.”