Botswana’s leading financial services group, Botswana Insurance Holdings Limited (BIHL) profits skyrocketed during the year ended December 2011. The Botswana Stock Exchange (BSE) listed group, saw its profits after tax rise to an impressive 42 percent to P471 million in the year ended December 31st 2011, compared to the P332 million realised the previous year. Their operating profit also saw a 12 percent growth of P316 million by December 2011from P281 million by December 2010. The impressive profits were attributed to Botswana Insurance Fund Management (BIFM), an asset management company, and Botswana Life Insurance’ dominance of the market, thus contributing largely to BIHL’s income generation.
The two companies were involved in increasingly competitive markets. Three years ago, BIHL embarked on a diversification strategy which saw them engaging in different businesses like asset management, which the board chairperson Batsho Dambe-Groth, said contributed largely to their impressive financial performance. Further, the group’s total assets also saw a total increase of 5 percent from P12 168 million in the year ended December 2010 to P12 728 million on the year ended December 2011. “Our short-term insurance company, Sure, is taking shape under the leadership of John Haenen, its founding chief executive,” said Dambe-Groth adding that it is likely to contribute to their current year’s financial performance.
BIHL launched Sure, on April 25th this year to offer full spectrum of insurance products to the market. BIHL Sure, according to Dambe-Groth, will quickly make its mark in the market. The group’s chief executive Gaffar Hassam said the group has achieved market-growth and has transformed BIHL into an efficient and profitable company, with a healthy capital position that is well placed to withstand market volatility and sustain itself in the long term. BIHL is a Botswana-based company that, together with its subsidiaries, underwrites all classes of long-term insurance, administers deposit administration schemes, manages investments and administers life and pension funds.