BIHL offloads loss-making business to BIC
Keikantse Lesemela | Friday September 5, 2014 13:43
BIHL management decided to sell the product owned by its subsidiary, BIHL Sure! as it was continuously making losses in the group. In the comment on the published financial results for the half year ended June 30 2014, BIHL group chairman, Batsho Dambe-Groth and group chief executive, Gaffer Hassam said the product kept on making losses beyond the level of tolerance.
“Management consequently entered into negotiations with Botswana Insurance Company Limited (BIC) to sell off the general lines book to BIC and we have now received all required regulatory approvals. We envisage the migration of the general lines book to be completed by mid- September 2014,” the comment said.
In a statement released on Wednesday, BIC strategy development and marketing manager, Komissa Burzlaff said the regulatory approvals for the transaction have been obtained and legal documentation pertaining to the acquisition has been finalised.
“BIC is pleased to announce that it has purchased the general lines insurance book of BIHL. The transition has brought on board additional skills from BIHL to BIC head office. Stakeholders can be rest assured that the highest standards with regards to continued service delivery and product quality will be maintained through BIC’s service delivery model,” she said.
In the six month to June 2014, the losses of BIHL Sure! jumped 61 percent to P7.3 million. BIC’s product portfolio in general insurance includes personal lines and commercial lines. Under personal lines, it offers motor insurance, house owners’ insurance, house holders’, personal legal liability and personal accident insurance. Under commercial lines it has motor insurance, fire, engineering, retrenchment cover, miscellaneous and liability insurance.