Namibia long-term insurance industry sees profit plunge by 189.7% in Q1

The long-term insurance industry saw a massive quarter-on-quarter (q/q) decline in profit for the first quarter of 2025, according to the Namibia Financial Institutions Supervisory Authority (Namfisa).The industry’s profit before tax (PBT) stood at N$1.2 billion at the end of the first quarter of 2025, reflecting a significant q/q decline of 189.7%, despite a year-on-year (y/y) increase of 63.3%.“The sharp quarterly decline in PBT was due mainly to a reduction in the number of new policies underwritten during the review period, which had a negative impact on gross premium income and overall profitability,” Namfisa said.The industry’s gross written premiums (GWPs) amounted to N$3.3 billion at the end of the first quarter of 2025, reflecting a decline of 9.1% q/q and an increase of 11.9% y/y, Namfisa said.“The quarterly decline in GWPs resulted primarily from a reduction in the number of new policies underwritten during the review period. The number of new policies underwritten during the quarter decreased by 7.7% to 112,002 policies by the end of the quarter,” Namfisa said.According to Namfisa, the industry’s gross claims rose to N$2.6 billion at the end of the first quarter of 2025, representing an increase of 7.3% q/q and 8.2% y/y.“The rise in total claims was driven primarily by an increase in claims activity, which was due largely to the timing and processing of claims submitted for risk and funeral policies affected by the December holiday period, resulting in a slowdown in the payment of claims,” Namfisa said.The industry’s total number of policies increased to 2 214 108, representing 2.2% growth q/q and a 14.6% increase y/y as at 31 March 2025.“This growth was largely supported by a notable 40% decline in policy lapses on a quarterly basis, which significantly contributed to the overall rise in the number of active policies during the review period,” Namfisa said.

Namibia long-term insurance industry sees profit plunge by 189.7% in Q1

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Republikein 2025-11-04

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Namibia long-term insurance industry sees profit plunge by 189.7% in Q1

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Republikein 2025-11-04

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