- Says Group Life Assurance portfolio was negatively impacted by COVID-19 over past year to June 2022
Botswana Insurance Holdings Limited (BIHL) says its Group’s results (profit before tax) for the period ended 30 June 2022 will be higher than those reported for the period ended 30 June 2021 by between 35 percent and 43 percent.
This translates into an increase of between P86 million and P106 million in the Profit Before Tax (PBT) compared to PBT of P246 million for the period ended 30 June 2021. The Group says it recorded a drop in claims paid in the financial period under review because of a significant reduction in claims for the Group Life Assurance portfolio. This particular portfolio was negatively impacted by COVID-19 in the comparative period.
BIHL explains in a trading statement issued to its shareholders: “The countrywide COVID-19 mortality rate reduced due to improved access to vaccinations. This led to a review of our claims assumptions which also had a positive impact on the half-year results. The non-Life businesses have also performed well despite the challenging economic environment.” BIHL says the Group’s results for the period ended 30 June 2022 are expected to be published during the week ending 2nd September 2022. In a separate statement, the leading financial services group announced that it has sold its 37.62 percent shareholding in FSG Limited, which is one of its subsidiaries.
“BIHL shareholders are informed that the buyer in the FSG transaction is ALCF I Investment II Proprietary Limited, registration number BW00002186037, a company incorporated in accordance with the Laws of Botswana (ALCF I),” says the statement. “As at the date of this announcement, ALCF I holds 19.37 percent of the shares in FSG. Following completion of the FSG transaction, ALCF I will hold 56.99 percent of the shares in FSG.” However, the transaction remains subject to regulatory approvals.