INTEGRATED ANNUAL REPORT
Improving livelihoods
A
BIHL INTEGRATED ANNUAL REPORT 2022
CONTENTS
KEY ACHIEVEMENTS IN 2022
ABOUT BIHL
Key achievements in 2022 | 1 | |
About this report | 2 | |
ABOUT | ||
4 | ||
BIHL | ||
About BIHL | 6 | |
Our purpose | 8 | |
Where and how we touch | ||
livelihoods | 9 | |
Timeline | 10 | |
Our market and trends | 12 | |
14 | HOW WE | |
CREATE VALUE |
108
ANNUAL FINANCIAL
STATEMENTS
Directors' report | 110 |
Statement of responsibility | |
of the Board of Directors | 111 |
Independent auditor's report | 112 |
Statements of financial position | 117 |
Statements of profit or loss | 118 |
Statements of comprehensive | |
income | 119 |
Statements of changes in equity | 120 |
Statements of cash flows | 122 |
REVENUE
Net insurance premium income
2% to P3,01 billion
Net recurring premium income
EARNINGS
Operating profit
é 132% to P408 million
Core earnings
ASSETS UNDER | DIVIDENDS |
MANAGEMENT | Paid as dividends |
(AUM) | during the year |
P405 million | ||
7% to | ||
é | (December 2021: | |
P38,5 billion | P195 million) | |
Final dividend proposed | ||
net of tax | ||
Our material matters | 16 | |
Our strategy | 17 | |
Our value-creating business model | 18 | |
Our risks and opportunities | 20 | |
Engaging with our stakeholders | 23 | |
PERFORMANCE | ||
28 | ||
AND OUTLOOK | ||
Five-year review | 30 | |
Chairman's message | 34 | |
Chief Executive Officer's report | 36 | |
Chief Financial Officer's report | 40 | |
Group embedded value | 44 | |
Report of the Statutory Actuary | 50 |
226
Basis of presentation and | |
accounting policies | 123 |
Notes to the annual financial | |
statements | 155 |
SHAREHOLDER
INFORMATION
Shareholder analysis | 228 |
Shareholders' diary | 230 |
Dividend distribution | 230 |
Notice of annual general meeting | 231 |
Notes to the form of proxy | 234 |
Form of proxy | 235 |
Definitions | 236 |
é 1% to P1,79 billion
Revenue from contracts with customers
é 9% to P139 million
Value of new business
é 138% to P481 million
Share of profit of associates
22% to P237 million
Profit attributable to equity holders
SOLVENCY
Business is well capitalised; required capital for the group subsidiaries is covered
7,7 times
(December 2021: 6,8 times)
P285 million
(December 2021: P200 million)
Special dividend proposed net of tax
P251 million
(December 2021: nil)
ENVIRONMENTAL, | ||
54 | SOCIAL AND CORPORATE | |
GOVERNANCE | ||
Our long-term sustainability | 56 | |
Our approach towards | ||
climate change | 57 | |
Our people | 59 | |
Awards | 65 | |
Corporate social responsibility | 68 | |
Corporate governance overview | 77 | |
Our board of directors | 92 | |
Our management team | 96 | |
King IVTM application register | 98 | |
Audit and risk committee report | 104 | |
Activities of the other board | ||
committees | 106 |
ibc
CORPORATE INFORMATION
9% to P160 million
é 56% to P615 million
EMBEDDED VALUE
é 9% to P5,76 billion
(December 2021: P5,29 billion)
Return on group embedded value
é 16,9%
(December 2021: 11,3%)
B |
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BIHL INTEGRATED ANNUAL REPORT 2022 | BIHL INTEGRATED ANNUAL REPORT 2022 |
ABOUT THIS REPORT
ABOUT BIHL
REPORTING SCOPE AND BOUNDARY
This is the integrated annual report of Botswana Insurance Holdings Limited (BIHL or the company) for the year ended 31 December 2022.
This report includes material information for our stakeholders about our financial, economic, social and environmental performance and demonstrates our performance against our previously stated plans.
The content encompasses all divisions and subsidiaries of the company across all regions of operation in Botswana and our associates in Eswatini, Ghana, Kenya, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Rwanda, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.
We provide insights into matters of importance to our stakeholders, highlighting how the organisation is governed, the material matters we identified and the risks and opportunities that could impact our business. We show how these factors influence our business model, strategic objectives and future plans in creating and sustaining value for our stakeholders in the short, medium and long term.
REPORTING PRINCIPLES AND FRAMEWORK
We applied international and Botswana reporting guidelines and best practices in compiling the report, including the following:
- Botswana Stock Exchange (BSE) Listings Requirements
- International Financial Reporting Standards (IFRS)
- Botswana Institute of Chartered Accountants (BICA) Financial Reporting Guides
- King IV Report on Corporate Governance for South Africa, 2016TM (King IVTM)
- International Integrated Reporting Framework ( Framework) of the IFRS Foundation
- United Nations Sustainable Development Goals (SDGs), and
- Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
as well as the relevant regulations and directives in force under the laws of Botswana.
The annual financial statements on pages 117 to 225 are presented in Pula, the group's presentation currency.
THEME
This is our purpose statement and is the essence of everything that we do as a business. We believe that we enhance the overall well-being and quality of life of individual and communities we operate in. Our intent as we operate is to develop strategies, initiatives and interventions that aim to enhance income opportunities, access to financial services and socioeconomic conditions for people, thereby enabling them to lead healthier, more productive, and fulfilling lives.
Read more about our purpose on page 8.
NAVIGATION
This integrated annual report was enhanced with digital navigation capabilities to assist you in moving between sections. You can do so by using the navigation icons at the top of the page or where you see one of these links:
Refers you to information available online at www.bihl.co.bw
Refers you to a page where more information can be found in this report.
MATERIALITY
This report discloses BIHL's approach to sustainability and identifies and explains the material environmental, social and governance (ESG) issues facing the group. The board has considered matters viewed as material to the business of the BIHL Group and its stakeholders. These are determined through board discussion, market research, stakeholder engagement, continuous risk assessments and the review of prevailing trends in our industry and the global economy. Sustainability issues that are not considered material to our business are not discussed. This approach should enable stakeholders to accurately evaluate the BIHL Group's ability to create and sustain value over the short, medium and long term. Management is not aware of the unavailability of any reliable information or any legal prohibitions to disclosing any material information.
Refer to page 16 for more information on our material matters.
TM Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that, unless otherwise indicated, reflect the company's expectations as at
31 December 2022. Actual results may differ materially from these expectations if known and unknown risks or uncertainties affect its business, or if estimates or assumptions prove inaccurate. The company cannot guarantee that any forward-looking statement will materialise, and, accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. The company disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available as a result of future events or for any other reason, unless required to do so by legislation and regulation. The external auditor and assurance providers have not assured these statements.
ASSURANCE
BIHL has a combined assurance model, which is set out below.
Business process | Nature of assurance | Assurance provider |
Annual fiinancial statements | External audit | Ernst & Young |
Internal control processes | Internal audit services | Internal audit services with the assistance of Sanlam Internal Audit |
BSE Listings Requirements | Compliance reviews | BSE and Ernst & Young |
Insurance due diligence | Independent risk reviews | Ernst & Young, independent actuary and reinsurers |
Per Botswana law and the BSE Listings Requirements, BIHL's annual financial statements were audited by our independent auditor, Ernst & Young.
Their unqualified independent auditor's report is set out on pages 112 to 116. The scope of their audit is limited to the information set out in the annual financial statements on pages 117 to 225.
APPROVAL
The audit and risk committee and the board acknowledge their responsibility to ensure the integrity of this report, which was reviewed by the audit and risk committee, the board, the Company Secretary and Statutory Actuary.
The board, after consultation with the audit and risk committee, concluded that this integrated annual report is presented materially in accordance with the Framework and approved it for publication on 6 May 2023.Mahube Mpugwa | Catherine Lesetedi | Kudakwashe Mukushi |
Acting Chairman | Group Chief Executive Offiicer (CEO) | Group Chief Financial Officer (CFO) |
Andrew Cartwright | Chandrakant Chauhan | Robert Dommisse |
John Hinchliffe | Lieutenant General Tebogo Masire | Nigel Suliaman |
Kobus Vlok |
Signatures were removed for security and privacy reasons.
CORPORATE INFORMATION
FEEDBACK
A hard copy of this integrated annual report is available on request as well as online at https://www.bihl.co.bw/investor-relations-pages
We are committed to improving this report each year and appreciate and encourage constructive feedback. Please forward comments to hndzinge@bihl.co.bw
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Contact details for BIHL are set out on the inside back cover.
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BIHL INTEGRATED ANNUAL REPORT 2022 | BIHL INTEGRATED ANNUAL REPORT 2022 |
About BIHL
Focused | on our purpose |
livelihoods | |
of improving | |
BIHL INTEGRATED
ABOUT BIHL
The BIHL Group is a leading BSE-listed financial services group with a proud record of achievements.
We are the holding company of two subsidiaries.
CORE VALUES
ABOUT BIHL
INVESTMENT CASE
Key player in the Botswana financial markets
Financial business with diverse revenue streams
Botswana Life Insurance Limited Botswana's leading life insurer with a market share estimated at over 71%. Botswana Life administers more than 300 000 policies and underwrites over P1,9 billion in recurring premium income.
Botswana Insurance Fund
Management Limited
A pioneer in asset management managing in excess of
P36 billion in assets across equity, fixed income, real estate, liquidity and alternative investments.
• | Collaboration |
• | Corporate citizenship |
• | High performance |
• | Agility and innovation |
• | Client-centricity |
Strong group liquidity and balance sheet position
High-quality and competent management and staff
Technical institutional memory embedded in the leadership team
BIHL top shareholders
Sanlam | 58,43% |
Botswana Public Officers Pension Fund | 14,72% |
Motor Vehicle Accident Fund | 4,04% |
Other | 22,81% |
Associates
27,91% | 50,00% |
* | |
37,62% | 25,10% |
33,00%
* Sold subsequent to year-end.
BIHL further holds a stake in five associate companies:
- Letshego Holdings Limited (Letshego or LHL)
- Botswana Insurance Company Limited (BIC)
- FSG
- Nico Holdings PLC
- Aflife Holdings Zambia.
6
CORE BUSINESSES
- Life insurance
- Asset management
- Short-terminsurance
- Other services
Track record of compelling product offering across Botswana
Diverse and client-centric
Strong partnerships and networks across different industries
Responsible and efficient capital allocation
Strong and trusted brand identity
Satisfactory growth track record
Innovative product development team
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BIHL INTEGRATED ANNUAL REPORT 2022 | BIHL INTEGRATED ANNUAL REPORT 2022 |
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PrimeTime Property Holdings Limited published this content on 08 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2023 14:43:02 UTC.