Banners
Banners

Latest News

Bahai community in Botswana invites members of the public to join in v...
Tatitown police have arrested a 36-year-old undocumented Zimbabwean ma...
FRANCISTOWN: A grandfather who could not control his libido will spend...
The Botswana Investment and Trade Centre (BITC) seeks to market Botswa...
Banners
Banners

BIHL swoops on targets as expansion drive heats up

MBONGENI MGUNI
Spreading wings: Lesetedi says the expansion will be limited to the region PIC:SHELEADSAFRICA.COM
The country’s largest diversified financial group, Botswana Insurance Holdings Limited (BHL), is ramping up its expansion strategy, filing a deal with the Competition Authority soon.

It is also revisiting an insurance target it once courted in the region and spreading out into the pension fund and medical aid administration sector.

With financial assets of P14 billion in hand and pretax profits of P537.1 million for 2019, BIHL is amongst the country’s most robust groups, boasting wholly owned subsidiaries such as Botswana Life and Bifm. BIHL also holds 28.1% in pan-African microlender, Letshego Holdings, 37% in Funeral Services Group, amongst equity investments that stretch offshore.

Under a diversification strategy launched last year, the group eyes new growth opportunities, while also “strengthening its core”, to enhance shareholder returns. Currently, BIHL has an annual shareholder return target of 14.5%.

On Wednesday, BIHL CEO, Catherine Lesetedi told BusinessWeek the group had identified a local ‘opportunity’ it intends to approach the Competition Authority for approval to acquire. In addition, the group is revisiting a deal for an insurance group within the region that failed at the first attempt two years ago.

“We are an insurance and wealth management company and those are the businesses that we are always going to look at even when we are exploring markets,” she said.

“We are looking at in-country and opportunities outside, but there are lessons to be learnt from other entities that have been aggressive in expansion outside the country.

“For us, we are very prudent and we also believe in partnerships. We will not invest in a country where we don’t have a partner with skin in the game in terms of shareholding.

“We are very clear that we are really focussed on Southern Africa and we are not going to be extending beyond that.”

Beyond insurance and

Banners
asset management, BIHL is also looking at investments that can ‘fit under its umbrella,’ in terms of the expertise the group has built up. Lesetedi said these would include opportunities in the pension fund and medical aid administration arena. However, an investment in the banking industry is out of the question.

“The bank one we are very clear. We don’t have the skills for banking and we don’t really have an appetite to go into banking, so that one is permanently off and it’s not something that we discuss.

“The medical aid administration side is something that we are actively looking at.

“On the pension fund administration, the new Retirements Act requires that Botswana Life separates the retirement annuity business from the life business. “So they are in the process of setting up a pension administration business,” she said.

“After that, when we have moved policyholders to the new business, it gives us an opportunity to explore fully whether or not we want to really do pension fund administration,” she added.

For the year ended December 31, 2019, BIHL received P142.3 million as its share of profit from its associates, more than two and a half times the value of the previous reporting period.

From a period of impairments in investments such as Letshego and Nico Holdings, BIHL’s associates posted strong performances across the board, making the argument for the group’s expansion drive.

“This is about really believing in your strategy and investing in businesses that we have the skill to help and that we can understand deeply,” Lesetedi told BusinessWeek.

“It’s also about our ability to actually assist where possible in those businesses.”

 



Business

Banners
Banners

Selefu

UDC, BDP Caucus

Latest Frontpages

Todays Paper Todays Paper Todays Paper Todays Paper Todays Paper Todays Paper
Banners
Adana Escort Adıyaman Escort Afyon Escort Ağrı Escort Aksaray Escort Amasya Escort Ankara Escort Antalya Escort Antep Escort Ardahan Escort Artvin Escort Aydın Escort Balıkesir Escort Bartın Escort Batman Escort Bayburt Escort Bilecik Escort Bingöl Escort Bitlis Escort Bolu Escort Burdur Escort Bursa Escort Çanakkale Escort Çankırı Escort Çorum Escort Denizli Escort Diyarbakır Escort Düzce Escort Edirne Escort Erzincan Escort Elazığ Escort Erzurum Escort Eskişehir Escort Giresun Escort Gümüşhane Escort Hakkari Escort Hatay Escort Iğdır Escort Isparta Escort İskenderun Escort İstanbul Escort İzmir Escort İzmit Escort Karabük Escort Karaman Escort Kars Escort Kastamonu Escort Kayseri Escort Kıbrıs Escort Kırıkkale Escort Kırklareli Escort Kırşehir Escort Kilis Escort Kocaeli Escort Konya Escort Kütahya Escort Malatya Escort Manisa Escort Maraş Escort Mardin Escort Mersin Escort Muğla Escort Muş Escort Nevşehir Escort Niğde Escort Ordu Escort Osmaniye Escort Rize Escort Sakarya Escort Samsun Escort Siirt Escort Sinop Escort Sivas Escort Şırnak Escort Tekirdağ Escort Tokat Escort Trabzon Escort Tunceli Escort Urfa Escort Uşak Escort Van Escort Yalova Escort Yozgat Escort Zonguldak Escort Alaçatı Escort Aliağa Escort Alsancak Escort Bornova Escort Buca Escort Çeşme Escort Çiğli Escort Gaziemir Escort Karşıyaka Escort fethiye escort iskenderun escort iskenderun escort iskenderun escort iskenderun escort iskenderun escort