BIHL realizes growth in funeral cover products
Batswana are generally not inclined to invest in life insurance but opt mostly for funeral covers, a situation that has prompted the Botswana Insurance Holdings Limited (BIHL), through its life insurance provider Botswana Life (BL), Funeral Services Group (FSG) and Botswana Insurance Company (BIC) to look into solutions to getting everyone covered.
This was said by BIHL Group Chief Executive Officer, Catherine Lesetedi at the Groups Abridged Unaudited Group Results for the six months ended 30th June 2017 held at Avani Hotel in Gaborone.
Delivering her overview of the BIHL strategy, Lesetedi said the situation, which has been brought upon by stagnant personal income growth where individuals consciously cease their life insurance covers as they analyze their budgets, is a worrying one for the insurance provider as it subsequently negatively affects its earnings.
She also noted that the Group’s core earnings decreased by 21% to stand at P164 million but made assurances that measures were being put in place to rectify the situation.
“The business has introduced a new life cover product; the Poelo Whole of Life, aimed at benefiting members with a lifetime cover inclusive of a 120% premium payback after 15 years,” she said. Lesetedi also said the company has embarked on a streamlining exercise to improve efficiency by also launching Sharia compliant investment products which are expected to contribute to new business growth going forward.
Despite the optimism, the group CEO projected that the outlook for the domestic economy remains fragile due to the unstable world economy and the constrained household income growth, a situation she admitted, represses discretionary spending.
“Despite these challenges, Management is focused on delivering sustainable growth and value to its stakeholders through various innovations,” she vowed.
Lesetedi, however, continued to note that the BIHL Group’s asset management business continues to strengthen in terms of growth and profitability, revealing that Botswana Insurance Fund Management (Bifm) yielded stellar returns to the group for the half year ended 30th June 2017.
She highlighted that this includes increasing assets under management by 20% to the value of P25 billion due to improved market performance.
Giving her presentation, BIHL Board Chairperson Batsho Dambe- Groth said the Group has vowed to become resilient towards fluctuations in the industry and stand fast in their commitment to delivering the best service to their clients while ensuring that investors and shareholders get gratifying returns on their investments.