BIHL profits recover as subsidiaries rebound
Lewanika Timothy | Monday April 6, 2026 06:00
The group posted pretax profits of P476.1 million, up from P48.4 million recorded in the prior year, with the recovery driven by rising contributions from its operating units across insurance and regional investments.
BIHL is a diversified entity that owns Botswana Life Insurance Limited and Botswana Insurance Fund Management (BIFM).
The share of profits from associates and joint ventures rebounded to a P99 million gain from a P385 million loss in the prior year. One contributor was homegrown microlender Letshego Holdings, which declared a technical loss under IFRS standards but showed overall improved financial health. The group consolidated its loan book to P11.7 billion, despite exits from key markets in East and West Africa.
The pan-African microlender reported a consolidated after-tax loss of P235.5 million for the full year ended December 2025, largely due to a one-off hit from discontinued operations. The drag came from the group's exit from non-core markets as part of a broader restructuring drive.
BIHL’s faith in Letshego and the strategy it has reportedly preferred for the microlender is paying off, as Letshego announced plans to exit the East-West Africa markets, which were draining its finances.
BIHL’s recovery was anchored by its core life insurance business, where net insurance service results surged 84% to P234 million. Net premium income is the total revenue an insurance company retains from premiums after deducting reinsurance costs and policy cancellations.
Despite aggressive growth in other areas, revenue from contracts with customers came under significant pressure, declining 18% from P350 million to P286 million, reflecting tightening household conditions as households cut expenditure.
Speaking at the results announcement last week, BIHL Group Audit & Risk Chair, Pragna Naik, revealed that for the year ended December 2025, the group operated in a tough economic environment, with core clients such as households and enterprises facing significant economic headwinds.
“The past year has been marked by economic turbulence, both locally and globally,” she said. “A potential slowdown in global economic growth, fluctuations in commodity markets, currency volatility, and sustained inflationary pressures are likely to filter through to the domestic economy over time, affecting business performance, household spending, and overall economic momentum.”
Net result from life insurance operations climbed to P280 million, while insurance revenue rose to P2.5 billion, signalling stronger policy growth and improved persistency across the book.
Looking ahead, BIHL directors cautioned that macroeconomic pressures would continue to weigh on performance.
“Botswana’s insurance sector faces a muted near-term outlook weighing on premium growth, increasing lapse rates and driving expense inflation,” the group said.