BIHL subsidiaries defy COVID- 19 pandemic
Botswana Insurance Holdings Limited’s ( BIHL) subsidiaries have navigated through the COVID- 19 pandemic, despite uncertainties on the market. The company’s life insurance and asset management businesses managed to shield their operations from the pandemic storm. Presenting the results for the financial year ended 31 December 2021, Acting BIHL Chairperson Mahube Mpungwa said the asset management, BIFM Group reported an increased operating profit by 12 percent compared to the prior year. “This good performance is attributable to the growth in assets under management ( AUM) of 18 percent reflecting the goodwill that the company continues to build with its clients,” said Mpungwa. Mpungwa said BIFM Group’s solid performance comes despite the Zambian operations of the company having realised a decline in operating profit
compared to the prior year, mainly due to a decline in performance fees income compared to the prior year and the depreciation of the Zambian Kwacha against the Botswana Pula. The BIFM Group’s latest financial results indicate that total assets under management increased by 19 percent to close the year at P36 billion, including Zambia’s at P5,2 billion and Bifm Unit Trust at P1,7 billion. On the other hand, Botswana Life delivered a solid set of results in the 2021 financial year, despite the COVID- 19 burdened economic climate. “Income for the year grew despite the headwinds largely attributable to the COVID- 19 pandemic and the slower than expected economic recovery.
Premium income grew by seven from P2,9 billion in 2020 to P3,1 billion,” said Mpungwa. However, operating profit declined by 65 percent year- onyear from P379 million to P134 million, due to unprecedented amount of COVID- 19 claims which impacted all risk product lines. Mpungwa noted that there has been an increase in claims due to general excess mortality and COVID- 19 related claims during the year. Though the country has seen an improvement in mortality since the vaccine rollouts, Mpungwa warned that the economic impact of the pandemic remains high and the general household’s disposable income remains under pressure. “The situation is made worse by the rising cost of living, virus mutations and the aftermath of COVID- 19 including increased morbidity risk.” Meanwhile, BIHL’s risk mitigating actions include focusing on collaboration within the group through driving internal synergies and mutually beneficial partnerships with key clients.