Namibia's long-term insurance industry's profit before tax surged by 64.4% to NAD4.2bn ($242m) in 2024, according to the Namibia Financial Institutions Supervisory Authority (NAMFISA).
In its 2025 annual report, NAMFISA said that the significant increase in profit was driven by higher revenue, primarily due to the growth in new policies written and strong recoveries in investment income during the period under review.
GWP
The industry’s gross written premium (GWP) rose by 26.8% year on year to NAD14.4bn in 2024. The growth in GWP was driven by a significant increase in new business underwritten during the year. The increase in insurance product uptake is attributable to the ongoing recovery of the economy, which has seen a steady rise in business activities, said NAMFISA.
The industry’s net claims paid rose by 14.3% to NAD10.3bn in 2024.
Investment income
The long-term insurance industry’s investment income experienced a significant increase of 23.1%, reaching NAD10.5bn in 2024“. ”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, following the respective general elections locally and internationally,” said the annual report.
Strong recoveries in financial markets, particularly the equity market at the Johannesburg Stock Exchange, following the 2024 South African general elections, coupled with renewed investor sentiment, contributed to enhanced performance across most markets, thereby driving the growth of the investment portfolio.
Assets
The value of the industry’s assets rose by 12.9% to NAD83.8bn as at 31 December 2024, compared 12 months previously. This growth was due to a significant expansion in the industry’s investment portfolio.
Liabilities
The value of the industry’s total liabilities increased by 12.5% to NAD71.7bn as at 31 December 2024, compared to 12 months previously. This 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 funeral, credit life, and risk class categories accounted for the highest new business underwritten, representing 38.3%, 19.3% and 18.5%, respectively. Policyholders’ liabilities, which constitute the core business of the industry, make up over 95% of the long-term insurance industry’s total liabilities.
Capital adequacy requirement
All 14 insurers in the long-term insurance sector met the recommended ratio of one-time coverage. Among them, 11 insurers maintained coverage greater than 10 times, indicating a strong solvency position.