GABORONE – Botswana Insurance Holding Limited (BIHL) Group continues its upward trajectory as evidenced by performance during the financial year ended 31st December 2013. The Group on Wednesday 5th March 2014 presented its Audited Group full year results at a stakeholder breakfast held at Gaborone Sun.  The financial results testified to an increase in value for shareholders through stronger embedded value and increased dividends during the period under review.

Embedded value, which sees the estimate value of the Group excluding the value attributable to minority interests and goodwill attributable to future new business, saw a significant increase in the period under review.

Commented BIHL Group CEO, Mr. Gaffar Hassam, “Increased value for our shareholders is a crucial objective for BIHL Group. It is a drive for increased shareholder value that guides all BIHL Group operations and investments as part of our twin strategy towards growth and profitability. The performance of the Group during the period 2013 is a testament to this drive for increased value.”

Embedded value increased by 21%, from P2,700,868 at the end of 2012 to P3,260,161  at the end of 2013. This saw a resultant increase in return on embedded value, from 19% in 2012 to 24% in 2013. “The embedded value was positively affected by good operating earnings from most of the business lines, especially the life business, and good investment returns which are in line with global market performance for the reporting period,” the results read. The embedded value allows for P98.4 million dividends paid during the period.

Basic earnings per share for ordinary equity holders stands at 183 thebe from 146 thebe in the previous year, an increase of 25%. Diluted earnings per share, moreover, increased by 25%, from 145 thebe in 2012 to 181 thebe in 2013. Operating profit increased by 19% to P277.3 million, with operating profit by the life business alone increasing by 15% due to good operational earnings from all the business lines. Core earnings increased by 15% to P310 million, while profit attributable to equity holders within the period under review increased by 26% to P492.5 million.

The BIHL Board has resolved to award a final normal dividend of 35 thebe per share (gross of tax).