Nam non-banking financial sector assets stagnant at N$357bn

January 31, 2023

Namibia’s non-bank financial institutions (NBFIs) sector saw its assets stagnating at N$357 billion at the end of the third quarter last year due to weaker performance in the financial markets. 

In its Quarterly Statistics Report for the third Quarter of 2022, the Namibia Financial Institutions Supervisory Authority (NAMFISA) said the sector’s total assets decreased quarterly by 0.1% and marginally increased by 0.8% year-on-year. 

The report also revealed that the long-term insurance industry’s total assets experienced a slight increase both quarter-on-quarter and year-on-year as at 30 September 2022 reflecting global market volatility. 

Nonetheless, the industry’s excess assets increased by 2.4% quarter-on-quarter and 3.2% year-on-year to N$9.1 billion in the same period. 

"The industry’s total liabilities increased by 1.2% quarter-on-quarter and marginally declined by 0.2% year-on-year to N$56.2 billion as at 30 September 2022. The quarterly increase in policyholder liabilities mainly influenced growth in the liabilities of the industry.  The increase in policyholder liabilities mainly resulted from growth in policyholders’ investment contract liabilities which were directly impacted by the increase in the value of investment assets of the industry," said NAMFISA. 

The report further indicated that the Short-term insurance industry’s total assets declined by 0.3% quarter-on-quarter and 8.2% year-on-year to N$7.0 billion as of 30 September 2022. 

NAMFISA added that the decrease in total assets for both periods mainly emanated from a decline in the reinsurer’s share of outstanding claims as of 30 September 2022. 

"The industry’s total liabilities increased by 2.0% quarter-on-quarter and declined by 5.8% year-on-year to N$4.9 million as at 30 September 2022. The moderate increase in total liabilities on a quarterly basis mainly emanated from growth in trade and other payables and the yearly decline is attributable to gross claims incurred but not reported during the period under review," the report states. 

Similarly, the Medical Aid industry held total assets of N$1.8 billion as of 30 September 2022, a decrease of 4.5% from the previous quarter and 11.9% on an annual basis.

NAMFISA attributes the decrease in total assets to the decline in the capital value of investment assets held by the industry because of unfavourable market performances. 

"The industry’s current liabilities increased by 0.2% quarter-on-quarter and increased by 12.9% year-on-year to N$497.0 million. The industry’s investments of N$1.7 billion on 30 September 2022 are considered adequate to withstand any adverse claims experience which may result from increased liabilities," said the authority.

Meanwhile, the total retirement fund investments (including insurance policies) decreased by 0.7% quarter-on-quarter and by 1.0% year-on-year to N$199.3 billion during the review period. 

Investments held in insurance policies amounted to 11.6% of the industry’s total investments. 

Investments held directly by retirement funds decreased by 0.2% quarter-on-quarter and by 1.4% year-on-year to N$176.2 billion during the quarter that ended 30 September 2022. 

"Insurance policies held by the industry decreased by 0.5% quarter-on-quarter but increased by 2.4% year-on-year to N$23.1 billion. The quarterly decline in investment values was as a result of losses in the value of investments due to negative market performances,' the report reads.












Rate this item
(0 votes)
Last modified on Wednesday, 01 February 2023 19:29

Joomla! Debug Console


Profile Information

Memory Usage

Database Queries