Momentum Metropolitan to retrench workers

Insurance company Momentum Metropolitan Namibia (MMN) has announced plans to retrench employees as it aims to make a 10% reduction in its labour operating costs. The measure is likely to see the company reduce its labour costs by N$10 million per annum. CEO Sakaria Nghikembua noted that MMN’s long-term insurance - or life business - operations continue to face challenges. “The expense base in the life business is high, relative to the policy book. This has resulted in the business experiencing negative value of new business for the past five years. Various measures have been implemented to reverse this situation. “This includes distribution channel reforms as well as cost-reduction measures,” he said in letter to staff, dated 26 June. “While the life business has been containing its expenses over the past years, and has begun to see positive results in policy growth - particularly in the last four months, there is a need for further expense-reduction measures,” Nghikembua said.This while continuing to focus on growing the policy book in order to secure its sustainability, he added. “One of the key areas in which impact could be made is personnel costs.” VoluntaryRetrenchments will be voluntary, in the hope that this will deliver the intended savings. “A subsequent involuntary retrenchment phase may be necessary if the required cost savings have not been achieved in the first phase. The targeted cost saving is 10% of our current payroll costs in the life business, which equates to N$10 million,” Nghikembua said. Retrenchments are not intended for employees in MMN’s non-life business departments, he added.“The retrenchment exercise will not apply to employees in the non-life businesses. In addition, the company retains the right to decline retrenchment applications from employees who may be considered critical to the operations of the business because of their skills or experience.”Employees opting for retrenchment packages will receive severance pay equal to two weeks’ remuneration for each year of continuous service.“MMN proposes that for all approved voluntary redundancies, the date of termination of employment shall be 30 September to allow for sufficient time to ensure compliance with all applicable statutory requirements in terms of the Labour Act,” he said. The group includes life insurer Metropolitan, asset manager and short-term insurance company Momentum and Methealth Namibia Administrators.

Momentum Metropolitan to retrench workers

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Namibian Sun 2025-05-02

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Momentum Metropolitan to retrench workers

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Namibian Sun 2025-05-02

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