BIHL bullish about first half year performance

Brian Benza
Staff Writer | Friday August 13, 2010 00:00

 

In a trading update released on Wednesday, BIHL says it expects the 2010 first half results (June 2010) to be significantly higher than the prior year's comparative period, resulting from strong operational performance from both its life insurance and asset management businesses.

'The expected strong performance was boosted by a recovery in the equity markets, which has resulted in significant unrealised investment surpluses, as well as the contribution from the associated company (Legal Guard) which was acquired in the second half of 2009,' reads a BIHL update.

The group's results are due to be published on or about August 31, 2010. BIHL's flagship subsidiary, Botswana Life (BL), which is the country's largest life insurance company with about 300,000 clients, was the jewel in the group's crown last year, contributing about 75 percent of the profits.

BL officials recently revealed that net policy benefits paid out in the first half of 2010 were likely to exceed P300,000. This is compared to the P524,000 paid out by the insurance company in policy benefits for the financial year ended December 2009.

While recorded in the books as an expense, the quantum of policy benefits paid out is an indicator of the volume of business retained and secured by the insurance company.BIHL recently concluded a restructuring exercise which saw the diversified financial concern setting up five separate divisions within the group which are all now being led by their respective heads. Traditionally, BIHL has been known for its two subsidiaries, Bifm and Botswana Life, but the holding company has since been unbundled into a total of five divisions by adding property, short-term insurance and unit trusts to Bifm and Botswana Life.

Former Botswana Life CEO, Regina Sikalesele-Vaka, is now at the apex as Group CEO of BIHL. Tiny Matilda Kgatlwane is the head of the asset management division while Catherine Lesetedi-Letegele was recently appointed substantive CEO of the life insurance business.

Former Bifm CEO, Victor Senye, is the head of the company's property division.

The group, which is the fourth largest company on the Botswana Stock Exchange, currently has assets worth P11 billion in Botswana and about P5 billion in Zambia where they are in the asset management, employee benefits and property businesses.