Botswana Insurance Holding Limited (BIHL) has, against the background of a global economy showing only moderate improvement and tough trading conditions on the local front, proved its ability to stand strong.
The Group’s half year results were largely driven by the substantial growth in new business for the period under review.
“To put our financial results in context, it is important to understand the challenging times our businesses have been operating in.
The global economy continued to moderately improve, but remains fragile due to the uneven growth across regions,” John Hinchliffe, Director at BIHL.
Group profits before tax grew to P288, 596,000, 37% up on the P210, 451,000 achieved in the previous year within the same period.
The Group registered profits of P237, 027,000 which was 38% higher than P171, 950,000 achieved in 2012.
Although expenses at P250, 463, 00 million were 14% higher than P219, 711,000 recorded in 2012, this was primarily due to the Group’s increased investment in infrastructure and investment property which is expected to translate into smoother operations and therefore higher returns in the future.
Embedded value, which sees the estimate value of the Group excluding the value attributable to minority interests and goodwill attributable to future new business, saw a significant increase in the period under review.
Embedded value increased from P2, 472,574 in 2012 to P2, 959,436 in 2013.
Earnings per share for ordinary equity holders stand at 87 thebe, from 64 thebe in the previous year.
The BIHL Board, noted Hinchliffe, has resolved to award an interim dividend of 15 thebe per share (gross of tax).
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.
The Group’s assets under management increased by 11% to P23.9 billion.
Total revenue in the period under review stood at P2,869,684,000, a 64% increase from the same period in 2012 (P1,749,203,000).
“In particular, Bifm’s first half of the year was exceptional with business performing above the prior year.
The good performance is on the back of strong assets under management, a position increased by new mandates won in the latter part of 2012,” noted Hinchliffe.
The BIHL Group has noted that as part of its strategy to become a fully-fledged financial services operation, all the BIHL Group of companies have been active and busy with key initiatives, that have proven to be fruitful in the period under review.
Looking into the future, the Group is expected to continue to focus on its key twin strategies of growth and profitability; this, in an effort to build upon robust results and achievements for the first half of the year and taking into consideration uncertainty in the global markets.