Gaborone – Leading financial services group, The Botswana Insurance Holdings Limited (BIHL) Group, presented its financials for the full year ended 31 December 2018 with strong contributions from all subsidiary businesses, including short-term insurance outfit, Legal Guard.
Despite pressures on revenue generation, Legal Guard achieved an operating profit of P4.1 million for the year, up from a P1.4 million for 2017. This has been achieved as the benefits of initiatives which began in prior years continue to be realized, including more streamlining and efficiencies being built into the operation. The business has continued to improve its claims administration processes resulting in a significant decline in claims costs.
Catherine Lesetedi, BIHL Group CEO, said, “The Board and Management are pleased to be able to deliver a strong and healthy set of results, showing continued addition of value to our shareholders – men and women across Botswana who placed their trust, loyalty and hard-earned money to invest in this proudly Botswana business. Across the Group, we continue to focus on driving greater profits and growth in a wholly sustainable manner. We see this starting to show, for example, in Legal Guard, whereby 2018 saw a number of strategic decisions made to bolster the business.”
Legal Guard also achieved a 9% year on year decline in operating expenses following the restructuring exercise undertaken in 2017 and a continuing focus on managing operating costs. Looking forward, Legal Guard will continue to focus on the implementation of its current strategic plan with emphasis on arresting and reversing the recent trend in top line performance.
Legal Guard also continues to focus on improving internal processes to enhance business agility and improve customer service.
Chaha Skelemani, Head of Legal Guard, said “We continue to invest greatly in our people and our processes as we grow this business to become a greater leader in its space. The performance for the 2018 period saw an improvement, and our focus is on building this further. Looking into 2019, we are exciting to bring new products to the market which will be game changers, such as product we call ‘Code Green’, a mobile app based emergency legal assistance service.”
He said, “With this app, downloaded and installed on their mobile phone, clients are able to access the services of a lawyer in case of a police emergency. You press the button on the APP, ensuring that your GPS is active and Legal Guard will engage a lawyer to attend telephonically or in person to the Police Station, where you are located to secure your release. This is a service we are truly proud to bring to the market.”
Key highlights as regards to Group performance include:
• Increase in operating profit by 12% from the prior year to P375 million
• Increase in core earnings by 11% to P383 million
• Increase in profit attributable to equity holders by 6% to P370 million.
• Increase in embedded value by an impressive 3% to P4.42 billion, allowing for P457.4 million dividends paid during the year
• Increase in net premium income by 1% to P2.35 billion
• Decrease in value of new business by 1% to P147 million, subdued mainly due to lower new business volumes for individual life and annuity portfolio
The Directors have resolved to award a final dividend for the year of 67 thebe per share (gross of tax) and a special dividend of 16 thebe per share.
