Chamwe Kaira
The number of active long-term insurance policies grew by 13.1% to 2,166,896 by the end of 2024. The growth was mainly driven by a higher volume of new policies underwritten during the year.
The sector recorded growth in its assets, supported by recoveries in both global and local financial markets. The value of assets rose by 12.9% to N$83.8 billion as of 31 December 2024. This increase was largely driven by an expansion of the investment portfolio. Excess assets increased by 15.4%, supported by stronger growth in total assets compared with total liabilities.
The value of total liabilities increased by 12.5% to N$71.7 billion. This was mainly due to growth in policyholders’ liabilities as a result of new business underwritten.
Policyholders’ liabilities account for more than 95% of total liabilities. The funeral, credit life, and risk class categories recorded the highest new business, representing 38.3%, 19.3%, and 18.5%, respectively.
Liquidity improved by 17.6% to 8.6 times, supported by strong growth in current assets compared with current liabilities. The sector maintained solvency and liquidity levels above the minimum prudential requirements.
Gross written premium rose by 26.8% to N$14.4 billion, driven by a rise in new business. The increase in product uptake is linked to the economic recovery and steady growth in business activities.
Investment income grew by 23.1% to N$10.5 billion. This increase was supported by reinvestments and renewed investor confidence both locally and internationally after the general elections.
Net claims paid increased by 14.3% to N$10.3 billion. The rise in claims was mainly from fund insurance business policies due to changes in policyholders’ investment preferences.
Profit before tax surged by 64.4% to N$4.2 billion. The growth in profit was driven by higher revenue from new policies and stronger investment income.
Caption
The long-term insurance sector policies grew in 2024.
- Photo: Old Mutual Namibia
