Insurance
The broker’s research shows that the company also pays good dividends—about 4.6%—which is almost double what peer companies in the region are paying.
Across the industry, “price undercutting is common,” and this has weakened profitability for many life insurers.
After three years of going down, BIHL’s value of new business is finally on the way up again. This, according to the company’s management, “goes well for future profitability,” since new business today means profits that can be unlocked for shareholders in years to come.
The group said it has implemented pricing in some of the schemes that are underperforming and continues to ensure that each and every scheme becomes profitable and sustainable on its own.
Botswana’s recent shortage of chronic medication in some parts of the country is more than a health story. It has real implications for Botswana Insurance Holdings Limited (BIHL), and by extension investors.
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