Botswana Insurance Holdings Limited (BIHL) returned to profitability in 2025, posting a P333 million profit attributable to shareholders, a sharp turnaround from the P106 million loss recorded in the prior year, as strong insurance performance and associate earnings offset weaker investment returns.
The group’s recovery was driven primarily by its core life insurance business, where net insurance service results surged 84% to P234 million, supported by improved claims experience and favourable assumption changes. This helped lift the net result from life insurance operations by 37% to P279 million, reinforcing the segment’s role as the group’s main earnings engine.
However, BIHL’s broader revenue picture remained under pressure. Revenue from contracts with customers declined 18% to P286 million, while net investment service results fell 38% to P48 million, reflecting adverse market conditions and interest rate movements that weighed on investment income. Core earnings also dipped 12% to P386 million, highlighting ongoing pressure on underlying profitability.
A significant boost came from associate companies, with BIHL’s share of profits from associates swinging to a P99 million gain from a loss in 2024, driven largely by strong performance from investee businesses. This, alongside improved insurance margins, pushed profit before tax up more than eightfold to P476 million.
The group’s balance sheet remained resilient, with group equity value rising 4% to P4.79 billion and capital adequacy strengthening, with required capital covered 9.3 times, up from 7.2 times the previous year. Despite a 2% decline in assets under management to P50 billion, BIHL maintained a solid solvency position and declared a final dividend of P160 million.
Management noted that the operating environment remained challenging, citing Botswana’s economic headwinds, including weaker mining activity, fiscal constraints and rising interest rates. These factors contributed to muted growth in non-insurance segments and increased pressure on investment returns.
Looking ahead, BIHL expects modest growth as macroeconomic pressures persist, but says its diversified model across insurance and asset management, coupled with strong capital buffers, positions it to navigate the subdued outlook.