• Net premium income reaches P1.99 billion
• Assets grow by 7% to reach P28.9 billion
• Hassam hails wonderful way of celebrating 40 years anniversary
Botswana Insurance Holdings Limited (BIHL), a Botswana Stock Exchange quoted group, has recorded an increase of 6 percent in net premium income to reach P1.99 billion for the year ended December 2014 growth despite suffering a knock in some of its portfolio.
BIHL, the holding company of Botswana Life Insurance and Botswana Insurance Fund Management (BIFM) saw its financial performance driven by the performance of Life Insurance business under Botswana Life.
Operating profit for the life business increased by 15 percent during the period under review, and this has been accredited to good operational earnings from all business lines.
In the asset management business, the group managed to grow its asset management by 7 percent to P28.9 billion worth of assets. BIFM, a subsidiary which oversees asset management, recently lost a lucrative P9 billion management contract of Botswana Public Officers Pension Fund (BPOPF).
The group CEO, Gaffar Hassam, has hailed the results as satisfactory as strong performance was recorded across the group and says looking ahead the key focus continues to be to ensure greater value for shareholders.
This year BIHL celebrates 40 years since it entered the local market and Hassam says the results are a wonderful way of celebrating the milestone.
Despite the group maintaining good performance from other subsidiaries, the short-term insurance business is experiencing challenges of its own. Since starting operations in 2012, BIHL management notes that continued market challenges including strong price competition and slower than anticipated penetration of the commercial lines market resulted in the business taking a view to discontinue offering short-term insurance mid-2014. The short-term book was sold to Botswana Insurance Company as a result.
After shedding off general insurance market, the business has to focus on the Legal Guard Division which the group says optimisation has begun to bear fruit both in terms of growth in customer base and improved financial performance.