Botswana Life profit goes up

Botswana Life Insurance Limited (BLIL) recorded incredible growth in profits this year, recording 78 percent in operating profit as Covid related claims have declined compared to last year.

The company’s operating profit grew from P102 million to P182 million. BIHL Group CEO, Catherine Lesetedi said claims from the COVID-19 pandemic remain subdued potentially from increased immunity in the population and strain variability. “Claims from the COVID-19 pandemic remain subdued potentially from increased immunity in the population and strain variability, however, there is still a future risk from virus mutation and its impact on virus transmissibility, disease severity and vaccine efficacy.”

She said the excess mortality experienced during the period ended 30

June 2022 and subsequent increases in claims caused a number of shocks to performance in the first half of the period, and as a result, the performance of the period is noticeably lower, and this decline is due to low new business volumes on all income lines. “We remain hopeful that the other indicators will improve as time goes on and we will continue executing our digitisation strategy to achieve further top-line growth and margin expansions across all businesses.”

Net Insurance Premium Income for the first half of 2022 declined by seven percent from P1.56 billion in 2021 to P1.45 billion. The Single premiums declined by 14 percent from P730 million in June 2021 to P616 million signalling the impact of inflationary pressures and increased interest rates on household income which saw reduced credit life premiums as the banks tightened their lending. Botswana Life CEO, Ronald Samuels said the company’s primary emphasis is on leveraging technology and innovation. “The team is working diligently at every step to provide Batswana with the greatest possible experience as clients. After two years of disruption brought on by the COVID-19 outbreak, we are standing with Batswana by paying out claims in a timely and appropriate manner.”

He said they are continuing to speed up the process of digitisation and realising operational online streaming of sales distribution processes (end-to-end), client self-service, and collaborative e-payments platforms in addition to already established distribution channels.” One of the causes for the rise in our operational earnings is as a result of this.”