Chamwe Kaira
The number of active policies in the short-term insurance sector dropped by 11.2%, reaching 660 156 as at 31 December 2024. The decline was mainly due to lapses, although the industry recorded growth in new underwritten policies during the year.
Despite the fall in active policies, profit before tax increased by 9.6% to N$762.3 million. Namibia Financial Institutions Supervisory Authority (Namfisa) figures showed that the rise in profit was driven by the growth in new policies.
The sector demonstrated resilience in 2024, supported by strong performance in financial markets. Excess assets rose by 15.2% to N$2.8 billion, while solvency positions declined slightly by 1%. Liquidity levels improved by 16.7%.
Total assets of the industry climbed by 17.8% to N$9.1 billion, boosted by recoveries in financial markets, particularly in unit trusts and the money market. Total liabilities grew by 19% to N$6.3 billion, driven by an increase in technical liabilities from higher provisions for unearned premiums and more outstanding claims.
The solvency ratio declined by 1% to 1.44 times. Namfisa said all insurers met minimum prudential requirements but will continue monitoring them closely.
It added that a solvency ratio of 1.45 times would be sufficient to cover the industry’s core obligations in case of an adverse event. The liquidity position slightly declined by 1% to 9 times compared with the previous reporting period.
Gross written premium rose by 18.1% to N$5.5 billion, supported by more new policies, mainly from higher motor vehicle sales linked to increased business activity.
Property personal, motor-only personal, and motor-only commercial sectors made up the largest shares of gross written premium at 29.4%, 16.7%, and 13.6%, respectively.
Investment income dropped by 4.3% to N$525.5 million, due to reduced fair value gains on listed equities. Net claims grew by 10.5% to N$1.5 billion, while management expenses rose by 20.5% to N$1.4 billion. The rise in management costs was linked to implementing IFRS 17 reporting requirements and higher staff expenses.
Commission payments increased by 11.6% to N$594.6 million, with property personal, motor-only personal, and motor-only commercial accounting for 48.6%, 19.3%, and 11.6% of the total commissions.
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Photo for illustrative purposes only
