BOTSWANA LIFE RELEASES STRONG RESULTS
Botswana Life continues to anchor the Botswana Insurance Holdings Limited as a key subsidiary, contributing to sound results for the holding company. This was revealed during the group presentation of abridged audited financial results for the year ending 31 December 2021.
According to a statement, the country’s biggest life insurer’s premium income grew by 7percent from P2.9 billion in 2020 to P3.1 billion and Net Recurring premium income grew 16percent from P1.58 billion to P1.83 billion. “The value of new business, which represents the present value of future profits from new business premiums written during the period, grew by 37percent compared to prior year due to higher sales volumes for some retail and corporate business portfolios and a shift towards a more profitable mix of new business,” said the company.
Furthermore, the insurance company recorded a drop operating profit to close at P379 million from P134 million the year before. “We are pleased with the performance of both Botswana Life and the BIFM Group, as key Subsidiaries within the BIHL Group. The major contributor to the decline in operating profit was the unprecedented amount of COVID-19 claims which impacted all risk product lines. The net insurance claims and benefits paid increased by 41percent in total compared to prior year. This was a direct result of general excess mortality and COVID-19 related claims during the year 2021, though we have seen an improvement in mortality since the vaccine rollouts and into 2022,” said BIHL Chief Executive, Catherine Lesetedi.
During the period under review, Botswana Life made a commitment to pay out claims in a timeous manner. “Our clients already have so much on their shoulders; they do not need struggles with claims on top of that. This is how we stand by them through life and more. Our Sales Team in particular,
keenly aware of the socioeconomic climate that we find ourselves in, has been a model of excellence in utilising digital channels and growing new business lines despite the challenges,” explained Botswana Life CEO, Ronald Samuels.