Botswana Insurance Holdings Limited (BIHL) has reported a sharp improvement in profitability for the six months ended 30 June 2026, with profit attributable to equity holders of the parent rising 121% to P334.9 million, compared with P151.7 million in the corresponding period last year.
The group’s core earnings more than doubled, increasing 102% to P287.5 million from P142.1 million, while profit before tax rose 112% to P426.5 million from P201.1 million. Profit for the period increased to P334.1 million from P151.5 million, representing a 121% improvement.
BIHL said the stronger performance was driven primarily by a significant improvement in its life insurance operations, alongside higher investment returns and stronger contributions from equity-accounted investments.
Net results from life insurance operations increased 136% to P207.7 million, up from P88 million a year earlier. The improvement was largely attributable to the investment service result, which recovered strongly to P107.3 million from just P2.6 million in the prior-year period.
The group said favourable movements in the yield curve during the period resulted in positive valuation impacts from the mismatch between assets backing insurance liabilities and the underlying liability profile. In particular, movements at the short end of the yield curve generated asset valuation gains, while changes at the longer end reduced the present value of long-term insurance liabilities.
The net insurance service result itself increased 22% to P105.7 million from P86.7 million, while insurance revenue rose to P1.18 billion from P1.03 billion.
BIHL’s equity-accounted earnings also provided a significant boost, increasing 65% to P245.6 million from P148.6 million. The group attributed much of this increase to the continued strong performance of Nico Group. However, BIHL cautioned that the contribution needs to be viewed against difficult economic conditions in Malawi, including high inflation and persistent foreign exchange shortages.
A P114 million hyperinflation adjustment was recognised in relation to Nico Group. BIHL also warned that the translation of Nico’s earnings into pula has not been adjusted for the potential impact of further currency depreciation, creating a risk that the reported equity-accounted contribution could overstate the underlying economic benefit when viewed in a stable-currency environment.
The stronger earnings performance was partly offset by a P99.1 million impairment of an associate, up from P84.7 million in June 2025. The impairment related to Letshego Africa Holdings following a decline in its listed share price during the six-month period.
BIHL’s group equity value increased 2.4% year on year to P4.92 billion from P4.80 billion. The group reported a return on group equity value of 11.7%, slightly below the 12.1% recorded in June 2025. Normalised return on group equity value declined to 10.5% from 15.6%.
The increase in equity value was supported by higher net asset value following the release of the asset mismatch reserve, although this was partly offset by a 37% decline in the value of in-force life business and lower fair-value adjustments for non-life operations.
Value creation from new business remained under pressure. The value of new business fell 21% to P66.2 million from P83.9 million. Recurring premiums declined to P24.1 million from P32.8 million, while single-premium business decreased to P49.7 million from P54 million.
The asset management business delivered a mixed performance. Bifm Group’s operating profit declined 20% year on year, which BIHL attributed to a decrease in average assets under management. Bifm Unit Trusts, however, recorded a 107% increase in operating profit. Group assets under management stood at P40.2 billion at the end of June, up from P39.3 billion in December 2025 but about P2 billion below the June 2025 level.
Revenue from contracts with customers declined marginally by 1% to P139.4 million, while investment income more than doubled to P528.3 million from P223.1 million. Investment surpluses also increased to P164.9 million from P91.3 million.
The group ended the period with total assets of P22.17 billion, compared with P20.55 billion a year earlier, while equity attributable to shareholders increased to P3.54 billion from P3.04 billion. Cash and cash equivalents stood at P671 million at the end of June, compared with P441 million at the same point in 2025.
BIHL also reported a stronger capital position. Its required capital cover improved to 10.9 times from 9.3 times at December 2025, which the group attributed mainly to the increase in net asset value following the release of the asset mismatch reserve and, to a lesser extent, lower underlying business risks.
The board has declared an interim dividend of 43 thebe per share, equivalent to P122 million in total and not subject to tax. The dividend was declared on 20 August 2026, with the ex-dividend date set for 6 October, the record date for 8 October and payment scheduled for 20 October 2026.
BIHL said the operating environment remains challenging, with weak diamond demand, subdued economic activity, high interest rates, fiscal constraints and pressure on household finances weighing on the broader economy. The group expects these conditions to continue constraining growth in the insurance sector in the near term.
Despite these pressures, BIHL said the insurance industry remains structurally resilient, supported by relatively low insurance penetration, ongoing demand for savings and risk products and a stable financial system. The group believes its diversified earnings base across insurance and asset management, together with strong capital adequacy, positions it to navigate the difficult environment, although growth is expected to remain modest in the short term.