Insurance industry financially sound and stable: Namfisa

14 Feb 2019 18:10pm
WINDHOEK, 14 FEB (NAMPA) - The long- and short-term insurance industries are financially sound and stable, the Namibia Financial Institutions Supervisory Authority (Namfisa) has said in a report.
According to the authority’s second quarterly report for 2018, the long-term industry continued to grow its total asset base by 2.2 per cent, quarter-on-quarter and by 12.9 per cent on a year-on-year basis, to N.dollars 54.9 billion.
“Asset growth was mainly driven by significant movements in total investments and cash and cash equivalents mainly influenced both the quarterly and yearly increases,” the authority said in the report.
It further said the long-term insurance industry’s total liabilities increased by 1.3 per cent, quarter-on quarter, and by 9.7 per cent on an annual basis to N.dollars 45.9 billion, adding that insurance policy holders and reinsurance creditors were the main contributors to the increase in total liabilities.
Unlike the long-term industry that enjoyed an increase in assets, the total assets of the short-term insurance industry declined by 1.2 per cent to N.dollars 6.5 billion on a quarterly basis and increased by 6.7 per cent on an annual basis, Namfisa said in the report.
The quarterly decrease in total assets was mainly influenced by significant declines in cash and cash equivalents and premium debtors.
Total liabilities declined by 4 per cent, quarter-on-quarter, and increased by 4.9 per cent year-on-year to N.dollars 4.2 billion during the period under review. The quarterly decrease, according to the Namfisa report, emanated from significant decreases in gross provision for unearned premiums, and trade and others payables.