For Botswana Insurance Holdings Limited (BIHL) shareholders, the interim dividend – money paid out to shareholders mid-year – has reduced to 53 thebe, the weakest mid-year payout in four years. But while your cheque is smaller, the group has built up its financial strength — giving BIHL a thicker cushion to protect both your investment and its policyholders.
BIHL is juggling three balls at once:
- Sustainably paying policyholders,
- Rewarding you as a shareholder, and
- Keeping your company’s financial position strong.
On one Hand, Claims are rising
The group paid out P1.1 billion in the first half of 2025, 7% more than last year, according to BIHL CEO Catherine Lesetedi, who told investors and analysts that “We would not exist and continue to be successful if we do not stand true by our policyholders.”
Lesetedi was presenting the company’s financial performance for the first half of 2025, which saw profit after tax increase to P151 million from P88 million.
Dividends Pay
While profit increased, dividends declared to shareholders were down from 66 thebe a share to 53 thebe a share. This means dividends that shareholders will get will be about 20% lower than last year at the same time.
Interim dividend trend
- June 2022: 65 thebe
- June 2023: 70 thebe
- June 2024: 66 thebe
- June 2025: 53 thebe
In June 2022, BIHL gave shareholders 65 thebe per share. The next year, June 2023, it went up to 70 thebe, the highest mid-year payout. By June 2024, it slipped slightly to 66 thebe, almost the same. But in June 2025, the payment dropped to 53 thebe.
This year, the decline in interim dividend comes as profits in life insurance and asset management slowed. Dividends are mostly from two subsidiaries, Botswana Life and Botswana Insurance Fund Management (Bifm).
Between Botswana Life and Bifm, Botswana Life still provides nearly three-quarters of profits. But its profit after tax fell.
Botswana Life Profit After Tax
- 2025: P76 million
- 2024: P191 million
- What it means: Profits fell sharply. Last year, Botswana Life was the biggest profit driver, but this year it’s less than half of what it made before.
BIFM (asset management arm)
- 2025: P52 million
- 2024: P68 million
- What it means: Slight drop, but still weaker than last year.
Associates (companies BIHL partly owns, like Letshego and others)
- 2025: P148 million
- 2024: P79 million
- What it means: Big recovery here. Associates more than doubled their contribution.
Impairments of Associates (losses written down from associate investment – Letshego)
Read about Letshego performance: Where Letshego Makes Your Money, Letshego Keeps More After Tax: What It Means For Investors, Letshego Keeps Investors’ Cash Flowing, Dividend Still on Hold, Pula Changes Could Cost or Pay You At Letshego
- 2025: -P85 million
- 2024: –P189 million
- What it means: Still a loss, but much smaller than last year.
While shareholders will get less compared to last year, the company kept more liquidity to strengthen its position for future opportunities. Its capital cover, a measure of financial strength, grew to 8.1 times, up from 6.8 times last year, meaning the group now has a bigger safety cushion to deal with risks in the future.
Read also:
- Pula Changes: What BIHL’s Response Signals for Shareholders
- BIHL Prepares the Ground for Future Shareholders’ Income
- Medicine Shortage: Investors Focus On BIHL’s Plans for Sustainable Growth
- BIHL Keeps Your Income Flowing As Belts Tighten
