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Home » Botswana Life achieves 21% growth in core earnings
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Botswana Life achieves 21% growth in core earnings

Fantastic MomentsBy Fantastic MomentsSeptember 2, 2024Updated:September 2, 2024No Comments3 Mins Read
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Botswana Life, a prominent life insurance and advisory business, continues to play a significant role in the performance of the Botswana Insurance Holdings Limited (BIHL) Group. Botswana Life is pleased to report a 21% increase in its Core Earnings for the fiscal year ending 30 June 2024 in comparison to the previous period. 

Botswana Life’s growth demonstrates the successful implementation of strategic initiatives to optimise premium variances, increase premium income, and effectively manage renewal expenses. This significant progress highlights the company’s ability to adapt to evolving market conditions while consistently delivering strong value to its stakeholders. The rise in core earnings underscores the effectiveness of these efforts.


The revenue is primarily produced by the anticipated release of the Contractual Service Margins (CSM) and the Risk Adjustment (RA). The unearned profits that are released as the insurance is provided are represented by the CSM. The CSM and RA releases for the period amount to P84 million, a decrease from the P92 million recorded in the previous period.

Notably, the profit before tax for Botswana Life operations is 53% of the prior years results. The key driver for reduced earnings is lower investment service results which is 66% below prior year. This drop in earnings is driven by the volatility of the market yield curve movements experienced during the current period leading to lower mismatch profits than in the prior period. In comparison to the previous year, the value of new business decreased by 11% to P56 million, primarily as a result of reduced retail new business volumes and compressed margins. In comparison to the previous period, the Group Credit Life business and annuity business has experienced substantial growth.

The BIHL Group Chief Executive Officer, Catherine Lesetedi, said, “This 21% growth in core earnings demonstrates our refined strategic approach, our value creation processes and life cover customer acquisitions. Our focus on reducing renewal expenses and enhancing our premium management is a testament to the effectiveness of our strategies and our commitment to operational excellence. We have also noticed a growth in life insurance covers, which shows that Batswana now are more educated about this product, how it works and its benefits.”

A key driver behind this achievement has been Botswana Life’s proactive management of negative renewal expenses. The business undertook a comprehensive review of its renewal processes, identifying inefficiencies and implementing targeted solutions to mitigate their impact. These efforts have significantly improved the business’s cost structure despite the decrease in revenue.

Botswana Life continues to enhance its digital platforms in the period, to deliver greater convenience, access, customer experience and financial inclusion.

Catherine Lesetedi concluded by saying, “We continue to strive to make sure that our processes and systems are up-to-date and efficient. We are also eternally grateful for the support and loyalty of our Clients, Brokers, Agents, Staff and other Stakeholders. These partnerships and relationships are at the core of our business, and we continue to safeguard and grow them for true mutual benefit.”

Botswana life business Earnings Results
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