LESETEDI reduces her stake in BIHL

• CEO slashed her shareholding by 30% • Group registers 7% growth in core earnings

LESETEDI reduces her stake in BIHL

The Chief Executive Officer (CEO) of Botswana Insurance Holdings Limited, Catherine Lesetedi, (BIHL) has reduced her shareholding in the group by over 30 percent.
According to the group’s 2019 annual report, Lesetedi’s shareholding was reduced to 144,938 shares in 2019, down from 211,637 in 2018. This represents a decline of 31 percent in her shareholding in BIHL.

The annual report also shows that the CEO’s total emoluments in 2019 were P6,145 million. The remuneration of executive directors comprises salaries and short-term incentives, as well as participation in long-term incentive plan.Lesetedi’s salary for the year amounted to P3,095 million, which is roughly P257,000 a month. Her bonus was P1,350 million while her “other benefits” listed amounted to P1,700 million. Lesetedi has been at the helm of Botswana’s largest insurer since 2016.In the past year, BIHL Group continued to perform impressively, increasing value for shareholders through a stronger embedded value for the year to end-December. While the group’s Operating Profit remained flat at P376 million, Core Earnings far outstripped the inflation rate of 2.2 percent for the year by rising to P412 million – an increase of 7 percent over the prior year. At the same time, Profit Attributable to Equity Holders rose 18 percent to P437 million.

In 2019, BIHL saw an impressive 11 percent increase in Net Insurance Premium Income to P2.6 billion. In addition, despite ever increasing levels of competition in the insurance sector, the group revealed that its position as the country’s leading financial services provider was assured and confirmed by an 8 percent rise in Value of New Business to P158 million.
At Botswana Life, total new business written grew by an impressive 18 percent, underpinned by strong performance on group lines. Recurring premium income recorded growth of 12 percent from P1.30 billion in December 2018 to P1.46 billion in the review period. The group says this line represents a sustainable source of profits in the long term.

The Value of New Business, which represents the present value of future profits from new business premiums written during the year, increased by 8 percent from the previous year on the back of impressive new business volumes from the group lines.Under Asset Management, BIHL experienced an 8 percent decrease in fee revenues to P98 million due to pressure on fees but Assets Under Management (AUM) grew by 6 percent to a record P29.2 billion. From this total of P29.2 billion, the Zambia operation contributed P4.2 billion AUM, with the remaining P25 billion AUM coming from Bifm Botswana.The growth was driven by both positive market performance and inflows from existing clients - a clear vote of confidence in Bifm’s prowess as an investment manager. Both Botswana Life and BIFM are owned 100 percent by BIHL.

On BIHL’s associates, Letshego Holdings Limited performance in the year under review was greatly improved with a significant 37 percent contribution to the overall performance of BIHL. Funeral Services Group (FSG) also produced satisfactory results for the period under review.
Nico Malawi Holdings’ performance for the year was pleasing with a significant turnaround for the bank which had experienced challenges in the past. Overall, BIHL says it pleased with the performance of the associates as reflected in their contribution to BIHL’s earnings in 2019.