BIHL Group revenue drops by 40%
Botswana Insurance Holdings Limited Group registered a 40 per cent drop of total revenue last year. According to the Group’s abridged audited financial results for the year ended 31st December, 2014, the Group made a total of P2, 936, 775, dropping from the P4, 914, 048 made over the previous year.
The Group’s operating profit increased by 4 per cent to P287.2 million while the core earnings increased by 3 per cent to P319.6 million. Profit attributable to equity holders increased by 1 per cent to P499.5 million. A total of P216.4 million was paid as dividends during the year. The Group’s assets under management increased by 7 per cent to P28.9 billion. In its statement, the Group said the asset management results have been positively affected by the growth in assets under management due to good investment returns and clients’ net contributions during the year.
On the global economic forecast, the Group said growth remains fragile. “Monetary policy will continue to be accommodative in major economies, still providing liquidity and fostering resilience of the financial sector to support economic expansion. The International Monetary Fund (IMF) projected growth in advanced economies at 2.4 per cent with the USA expected to grow by 3.6 per cent, while growth in Europe is projected at 1.2 per cent,” the financial statement indicated.
It further said growth in emerging markets and developing countries is expected at 4.3 per cent in 2015 and 4.7 per cent in 2016. It said in Europe, the threat of deflation makes reducing rates less risky and the European Central Bank (ECB) adopted a less conventional monetary policy of quantitative easing (QE) in January 2015.
“Botswana growth rate is estimated at around 5 per cent. Inflation is well within Bank of Botswana’s target range of 3 to 6 per cent. The inflation outlook looks positive on account of worldwide oil price decreases, weak outlook for the European economy and weaker demand worldwide,” the statement said.
It said while the outlook of Africa is positive in terms of investment destination, uncertainties in some oil rich countries such as Nigeria are a concern as low oil prices put considerable pressure on those countries’ public finance. “With the threat of Ebola subsiding, some West African countries like Guinea Conakry, Sierra Leone and Liberia could see a revival of growth in 2015 as we will see a freer flow of capital, both human and financial from and to those affected areas,” it said.