Namibia's short-term insuance industry posted pre-tax profit of N$1bn ($60m) for the year ended 31 December 2025, climbing by 37.9% over 2024, according to the Namibia Financial Institutions Supervisory Authority (NAMFISA).
In its 2026 annual report, NAMFISA said that the profit growth was driven by an increase in investment income and underwriting profits.
The industry’s GWP rose by 8.3% to N$6bn for the year ending 31 December 2025, due to increased motor vehicle sales amid improved business activity during the year. The motor-only commercial, property commercial, and general liabilities sectors accounted for the largest proportions of the GWP, representing 19.5%, 17%, and 15.4%, respectively. The industry’s net claims increased by a moderate 10.9% year on year, reaching N$1.7bn in 2025.
Investment income jumped by 57.2% year on year to N$826.2m in 2025, largely attributable to the strong growth in the industry’s investment portfolio over the year.
Management expenses increased by 4.5% to N$1.4bn in 2025, primarily attributed to costs associated with an increase in manpower. The industry’s commission paid increased by 9% to N$648.4m during the year.
Balance sheet
Total assets rose by 11.0% to N$10.2bn as at 31 December 2025. The growth in industry assets was driven by a rise in investments, which in turn was driven by the favourable performance of the financial markets.
Total liabilities grew by 17.4 % to N$7.4bn as at 31 December 2025. The increase stemmed primarily from the expansion of technical liabilities due to an increase in the gross provision for unearned premiums, aligned with the growth in GWP.
Solvency
The short-term insurance industry’s solvency ratio declined by 4.7ppt to 1.37 times as at 31 December 2025, sufficient to cover the core financial obligations of the industry. All 14 short-term insurers met the minimum prudential requirements.