Botswana Insurance Holdings Limited (BIHL) has reported its interim consolidated financial results for the six months ended 30 June 2024. The unaudited results show notable financial growth for the Group, driven by strategic initiatives and effective management.
Net Insurance Service Result
The Group’s net insurance service result increased by 19%, reaching P87 million. This improvement reflects the Group’s focus on delivering high-quality service and innovative solutions through its subsidiaries, including Botswana Life and Bifm. Revenue from contracts with customers also saw an 8% rise, reaching P158 million, attributed to the Group’s diverse financial products and services.
Assets Under Management
BIHL’s Assets Under Management (AUM) grew significantly by 16%, closing at P48.2 billion. This increase highlights the Group’s strong market position and successful investment strategies. The rise in AUM underscores the trust clients place in BIHL’s ability to manage and grow their financial assets.
Life Insurance Business
In the life insurance sector, Botswana Life’s core earnings increased by 21% compared to the previous period. This was due to reduced negative renewal expense variances, lower negative premium variances, and higher earned premiums on Group Credit Life. Revenue from Contractual Service Margins (CSM) and Risk Adjustment (RA) amounted to P84 million, down from P92 million in the previous period.
Asset Management Performance
Bifm’s performance in asset management showed significant improvement, with operating profit increasing by 41% year-on-year. Excluding Zambia operations, operating profits grew by 25%, driven by a 15% rise in operating income and a substantial increase in AUM. Bifm Unit Trusts saw operating profit rise 3.8 times compared to the same period in 2023. Overall, Bifm’s AUM increased to P48.2 billion from P41.4 billion the previous year.
Capital and Dividends
The Group’s solvency position remains strong, with required capital coverage at 6.8 times as of June 2024, compared to 7.8 times in June 2023. During the review period, BIHL distributed P326 million in dividends and proposed an interim dividend of P188 million and a special dividend of P17 million. These proposed dividends, which are not subject to tax, reflect the Group’s commitment to returning value to shareholders.
BIHL Chief Executive Officer Catherine Lesetedi commented on the results, emphasizing the role of digital transformation and operational efficiency in achieving the Group’s financial success and positioning it for future growth.