As the impact of COVID-19 pandemic moderate, Botswana Insurance Holdings Limited’s (BIHL) performance has started to surge, according to the company's cautionary trading statement on the Botswana Stock Exchange (BSE).
“The Group’s results profit before tax for the period ended 30 June 2022, will be higher than those reported for the period ended 30 June 2021 by between 35 percent and 43 percent, this translates to an increase of between P86 million and P106 million in the profit before tax (PBT),” said BIHL’s trading statement.
The statement further highlighted that the PBT for the period ended 30 June 2021 was P246 million. Statistics indicate that the Group recorded a drop in claims paid during the period ended 30 June 2022, due to a significant reduction in claims for life assurance portfolio which was negatively impacted by COVID-19 in the comparative period.
“The country wide COVID-19 mortality rate reduced due to improved access to vaccinations, this led to a review of our claims assumptions which also had a positive impact to the half-year results. “The non-life businesses have also performed well despite the challenging economic environment,” said BIHL.
The results for the year ended 30 June 2022 are expected to be published during the beginning of September. Meanwhile, Sanlam, a South African company with majority shareholding stake in BIHL, has announced intentions to scale up digital adoption at the local insurance company.
“We believe the world is changing and with technology playing an increasingly critical role in every aspect of business, we recognise that we need to accelerate the development of digital solutions to ensure we remain the competitive vanguard, this goes well for BIHL Group, our trusted partner,” said Sanlam Emerging Markets Chief Executive Officer, Heinie Werth. BIHL owns leading asset management firm, BIFM and Botswana Life, also a market leader in the country's insurance sector.