Chamwe Kaira
The long-term insurance subsector maintained strong profitability in the first half of 2025, building on the momentum achieved in 2024 when gross written premiums rose to N$14.4 billion.
According to the Bank of Namibia and the Namibia Financial Institutions Supervisory Authority (Namfisa) in their joint October 2025 Financial Stability Report, the sector’s stability reflects several factors.
These include inflation-linked premium adjustments, greater demand for life, funeral, and investment-linked policies, growth in the middle-income population, and successful product diversification.
The report assessed the strength of Namibia’s financial system and its ability to withstand both internal and external shocks.
The report said the claims experience through mid-2025 showed continued stability, following the post-Covid-19 recovery period. This trend has provided insurers with a predictable environment for sustained profitability.
Claims had surged during the pandemic, peaking at N$10.7 billion in 2021. They later stabilised at N$9.2 billion in 2022 and 2023 before increasing by 15.2% to N$10.6 billion in 2024. The report noted that this normalisation has helped insurers implement strategic plans and maintain profit margins despite global economic challenges.
The subsector recorded a positive return on assets in the first half of 2025, supported by steady premium growth and controlled claims.
This profitability shows that the recovery is driven by improved operational efficiency and strategic positioning rather than short-term market fluctuations.
Investment strategies remained focused on equities and bonds to align with long-term obligations.
The report said 62% of investment assets were held in these instruments, maintaining the sector’s alignment with its liability profile.
Domestic investments reached N$41.9 billion in the first half of 2025, including N$10.4 billion in government bonds, contributing to fiscal stability alongside the retirement funds subsector.
The long-term insurance industry also maintained a strong solvency position between January and June 2025, supported by continued profitability, solid capital reserves, and positive market performance.
Unencumbered assets grew from N$12.6 billion in 2024 to N$13.9 billion during the first half of 2025, providing a larger financial cushion against market volatility.
