Life insurance profits jump 64%

The Namibia Financial Institutions Supervisory Authority (Namfisa's) 2025 Annual Report, covering financial year (FY) 2024/25, confirms that Namibia’s longterm life insurance sector delivered its strongest performance since the post Covid-19 recovery. 

Growth was driven by a marked increase in new business volumes and a recovery in investment markets, particularly equities, reflecting improved economic conditions and renewed investor confidence.

Gross Written Premiums (GWP) increased substantially from approximately N$11.35 billion in FY 2023/24 to N$14.4 billion in FY 2024/25, representing yearonyear growth of 26.8%. This expansion was largely supported by strong demand for funeral, creditlife, and risk insurance products, underpinned by economic recovery, inflationlinked premium adjustments, and improved household confidence.

Investment income also recorded strong growth, rising by 23.1% from about N$8.53 billion to N$10.5 billion. This performance was driven by favourable equity market conditions, including exposure to the Johannesburg Stock Exchange, as well as portfolio growth and improved asset valuations following regional political stability.

Net claims paid increased from roughly N$9 billion to N$10.3 billion, reflecting growth of 14.3%. Claims experience continued to normalise following pandemicrelated peaks, indicating a stable mortality and morbidity environment. Importantly, claims growth remained below premium growth, supporting improved underwriting margins and overall profitability.

During FY 2024/25, the longterm insurance sector accounted for the largest share of claim refunds arising from regulatory intervention. Approximately N$3.1 million was refunded to life insurance policyholders out of total insurancesector refunds of about N$4.4 million. While refund values declined compared to FY 2023/24, life insurance remained the main source of complaintdriven remediation, highlighting ongoing marketconduct challenges, particularly in funeral and creditlife business.

Active policies increased, driven mainly by new business. Funeral insurance accounted for 38.3% of new policies, followed by creditlife at 19.3% and risk insurance at 18.5%. Profit before tax rose sharply from approximately N$2.55 billion to N$4.2 billion, a growth rate of 64.4%, supported by higher investment returns, controlled claims, and operating leverage.

From a regulatory perspective, continued implementation of the Financial Institutions Market Act (FIMA), enhanced marketconduct standards, strengthened capital adequacy requirements, and closer anti-money laundering and countering the financing of terrorism (AML/CFT) alignment contributed to improved policyholder protection and market stability, albeit with increased compliance costs.

Overall, FY 2024/25 marks a stepchange toward a stronger, more resilient, and better regulated life insurance sector in Namibia.

Ruben Haimbili writes that Namibia’s life insurance sector posted post-Covid high premium growth, stronger markets drive best performance since pandemic.