Botswana Insurance Holdings Limited (BIHL) has reported a strong rebound in profitability for the first half of 2025, with profit attributable to shareholders rising 71% to P152 million compared to P89 million in the same period last year.
The group’s performance was supported by an 89% jump in earnings from associates to P149 million and a marked improvement in equity value, which grew 3% to P4.8 billion. Return on group equity value improved to 12.1%, reversing a 5.4% decline in December 2024.
However, operating profit fell sharply by 56% to P117 million, weighed down by weaker investment service results amid volatile financial markets. Core earnings dropped 52% to P142 million, while net insurance service results remained steady at P87 million.
BIHL declared an interim dividend of P151 million, or 53 thebe per share, compared to P205 million a year earlier. Dividends of P114 million were paid during the reporting period.
The group’s life insurance business faced lower investment gains, but the value of new business rose 49% to P84 million, reflecting stronger margins in both retail and corporate lines. The asset management arm, Botswana Insurance Fund Management (Bifm), delivered a modest 6% increase in operating profit on the back of higher assets under management, which stood at P51 billion.
BIHL also booked an P85 million impairment on an associate, mainly Letshego Africa Holdings, but this was partly offset by robust contributions from Nico Holdings.
"Despite the economic headwinds and other emerging challenges from the public health sector presenting heightened morbidity and mortality risk, management remains optimistic and expects the positive new business trajectory experienced in the first half and the improving claims experience on the group funeral portfolio to contribute positively to the results in the second half," BIHL said.
"Management has intensified efforts on policy retention, which remains a key risk as households rearrange and prioritise essential expenditure in the midst of tough economic times. That said, the group’s core operations continue to be resilient and generate profits and positive cash flows, and this is expected to continue in the ensuing period."