Insurance company declares P256 million in profits
Botswana Insurance Holdings Limited (BIHL) Group has finished the year off on a strong note, driving up premium incomes with double-digit growth, BIHL Group Chief Executive Officer, Catherine Lesetedi has said.
Presenting BIHL group 2017, End of Year Financial results report in Gaborone recently Lesetedi noted that the impressive results were due to the Group’s seasoned expertise, its continued delivery on the company’s strategy that places a continued focus on people, up scaling systems and driving innovations in the market to diversify its solutions.
“We will continue to grow our recurring income lines as this represents a sustainable source of profits in the long term,” she noted.
The key highlights of the company for the period under review included, but were not limited to the company amassing a total net income of P2.8 million, up by 7 percent from P2.6 million recorded in 2016 for the life business.
The Group CEO continued that other highlights for the life insurer included a recurring premium income, which grew by an impressive 12% to P1.22 billion in 2017 compared to 2016’s P1.09 billion.
Total underwritten business increased by 11 percent while total new business written grew 11 percent underpinned by strong single premium income performance.
The BLIL Profit for the year stood at P256 million, a 6 percent decline from the P275 million recorded at the end of 2016.
Lesetedi also revealed that in the same reporting period, the business launched the ‘Poelo Whole of Life’ solution, a product that not only offers policyholders lifetime coverage but can also pay policyholders 120 percent of their premiums back after 15 years.
She said the value of new business, which represents the present value of future profits from new business premiums written during the year, decreased by 8% from the prior year owing to reduced margins.
“The launch of these products demonstrates our agility and continued commitment to innovation and predicting customer needs. Prospects for the economy do remain mixed reflecting both international economic uncertainty as well as domestic challenges,” she said.
Despite these challenges, BLIL however remains focused on delivering sustainable growth and value to customers and wider stakeholders through innovation driven by sound commercial insights.