Botswana Insurance Holdings Limited (BIHL) last week left its stakeholders with a smile as it announced that directors have resolved to set final dividend for the year at P0.67 per share, the highest nominal dividends paid to date.
This was revealed at the announcement of the group’s end of year financial results last Friday.
The main drivers of the soaring dividends can be attributed to the continued well performance of BIHL’s subsidiaries and associates, namely, Botswana Life Insurance, BIFM, Legal Guard, Letshego and FSG.
It should however, be noted that BIFM (Botswana Insurance Fund Management) Group’s operating profit experienced a 20% decline year on year, primarily due to the decrease in assets under management.
In spite of this, the business remained profitable.
The significant increase in dividend paid between 2014 and 2015 can also be attributed to the group remaining well positioned in terms of capital management and solvency.
Speaking the event, BIHL Group Chief Financial Officer, Andre Bester said: “We are happy to share with our valued stakeholders a pleasing set of financial results for the period. This speaks to a stronger performance than that of the previous year in many respects. There is no room, however, for complacency of any kind, as this only propels us further towards delivering on our twin strategies of profit and growth.”
BIHL has also moved to diversify their portfolio and increase growth through the recent acquisition of 25.1% of Nico Holdings Limited (based in Malawi).
Other significant investments include 50% indirect ownership of BIC (Botswana Insurance Company) which was acquired in January.
BIHL’s newly appointed Chief Executive Officer, Catherine Lesetedi-Letegele said the continued uncertainty in the global markets is expected to continue to affect the results, and that despite this, they expect to achieve continued growth for their shareholders.
“Key initiatives are already underway with new developments in the pipeline to continue to contribute towards ensuring we lead the pack as a proudly Botswana, broad-based and fully-fledged financial services Group.”