COVID-19 pandemic hits Botswana’s insurance industry

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COVID-19 pandemic has reduced profits for Botswana’s insurance industry.

Botswana Insurance Holdings Limited (BIHL), the country’s leading insurance company on Wednesday issued a cautionary statement to its shareholders through the Botswana Stock Exchange (BSE), warning of a drop in its profit before tax.

The Group’s interim results (profit before tax) for the six-month period ended June 30 2021 will be lower than those reported for the six-month period ended June 30 2020 by between 22 percent and 26 percent, said BIHL Group Chief Executive Officer, Catherine Lesetedi.

Lesetedi said BIHL recorded an increase in claims of 44 percent during the six-month period to June 2021 due to excess mortality adversely impacting the life insurance business.

“The increase in mortality was driven by the COVID-19 pandemic as the country continues to battle with high infection rates experienced in the 3rd wave which have overwhelmed medical facilities,” said Lesetedi.

However, the trading environment remains volatile, and COVID-19 is expected to continue to pose challenges into the 2nd half of the year, she warned. Enditem

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