The long-term insurance industry's profit before tax decreased by 18.8% to N$3.4bn ($204.5m) in 2025, compared to 2024, according to the Namibia Financial Institutions Supervisory Authority (NAMFISA).
In its 2026 annual report, NAMFISA said that the significant decrease in profit was primarily driven by weaker underwriting performance, driven by a substantial increase in policyholder benefits and liabilities.
The industry’s gross written premium (GWP) decreased slightly by 0.1%, reaching N$14.4bn in 2025. The decline was primarily driven by a 3.1 % reduction in single premiums, reflecting lower once-off contributions from policyholders during the year.
Net claims paid rose by 5.0% to N$10.8bn by the end of the review period. The increase in total claims was mainly driven by fund insurance business policy claims due to changes in policyholders’ investment preferences. Most insurance claims were attributed to the funeral, risk and credit life classes, accounting for 38.4%, 20.6% and 18.3%, respectively
Balance sheet
Investment income experienced a significant increase of 45.6%, reaching N$15.3bn during the year. This remarkable growth is largely attributable to the strong growth in the industry’s investment portfolio. The robust performance in financial markets was driven by substantial reinvestments, fuelled by renewed investor confidence both locally and internationally
Total assets rose by 15.8% to N$97.1bn as at 31 December 2025, compared to 12 months previously.
This growth was primarily driven by a significant expansion in the industry’s investment portfolio, supported by strong recoveries across global financial markets in 2025 and exceptional equity market performance on the Johannesburg Stock Exchange, largely driven by surging commodity prices and renewed foreign investment inflows, particularly from international investors into mining and resource-linked equities. This resurgence in investor confidence supported broad-based improvements across most asset classes, thereby contributing to the continued growth of the investment portfolio.
Total liabilities increased by 17.0% to N$83.9bn as at 31 December 2025 compared to 12 months previously. The increase in liabilities was primarily driven by the growth in policyholders’ liabilities as a result of the growth in new business underwritten during the year. The individual risk, life annuities, and fund risk class categories accounted for the highest new business underwritten, representing 30.0%, 15.8% and 14.3%, respectively Policyholders’ liabilities, which constitute the core business of the industry, make up over 95% of the total industry liabilities. As such, significant changes in policyholder liabilities have a substantial impact on the overall liability fluctuations.
Solvency
The sector continues to maintain solvency levels that were above the minimum prudential requirements. All the insurers met the recommended ratio of one-time coverage, and 12 insurers maintained a coverage greater than 10 times, indicating a strong solvency position. There were 15 long-term insurers operating in Namibia at the end of 2025.