BIHL sails past COVID-19 to 24% profit jump
Pauline Dikuelo | Friday March 12, 2021 13:05
BIHL’s performance, set against the difficult operating environment caused by COVID-19 in 2020, underlines how the local financial sector was not only able to withstand the pandemic, but in some cases and sectors, actually registered higher growth during the period. BIHL’s subsidiaries include the country’s largest life insurer, Botswana Life and the biggest asset management company, BIFM.
According to results published this week, BIHL’s net premium income grew by 11% to P2.9 billion, while the group was able to keep a lid on claims and benefits, which only rose by 2.4 percent to P1.7 billion. On the other hand, investment income fell 68% to P370 million due largely to a net loss on financial assets held at fair value. BIHL’s share of profit from associates shot up 81% to P257.3 million aided by improved performances in the group’s businesses as well as the turnaround of a previous impairment which did not recur. BIHL’s associates include Letshego, Funeral Services Group and Nico Holdings in Malawi.
Commenting on the results, BIHL CEO, Catherine Lesetedi said the life insurance business had remained steady showing resilience despite the challenging economic environment brought about by the COVID-19 pandemic.
“Despite the increasing COVID-19 risk, which continues to put pressure on our traditional face-to-face business model, we continue to serve clients better and conveniently by focusing on executing our digitalisation strategy,” she said.
According to Lesetedi, the strategy will assist in maintaining the group’s position as a market leader while focusing on looking for opportunities to expand the offerings of the group.
“As a result of the COVID-19 impact, the business accelerated its digitisation projects,” she said.
“These will enable us to continue to write new business, enhance the customer experience by giving our customers online capability to access our platforms as well as several options to pay their premiums.” Lesetedi said the focus on collaboration had yielded results in the past and management would continue to drive internal synergies as well as mutually beneficial partnerships with key clients.