Burglars, Accidents, Floods Push Insurance Claims to N$466 Million

THE gross written premiums of the short-term insurance industry increased by 32,2% to N$885 million in the first quarter of this year, the Namibia Financial Institutions Supervisory Authority (Namfisa) said yesterday.

The industry incurred claims of N$466 million. The increase in claims is attributable to the festive and rainy seasons, when occurrences of burglaries, car accidents and floods increase.

During the same period, the short term insurance industry assets increased by 8% to N$3,75 billion.

Investment income for the short term industry rose by 10% to N$38 million. The industry reported profit before tax of N$ 74,7 million for the period, down from N$122 million in the previous quarter.

Profit before tax increased in comparison to the same quarter of the previous year, by 12,1%, from N$ 66 million.

The long term insurance industry assets increased by 3,1% to N$37,1 billion in the first quarter of this year from the previous quarter.

Total gross premiums for the industry was N$1,53 billion, down by 0,81% from N$1,54 billion in the previous quarter. The decrease is attributable to the decline in new policies written, surrenders, policy lapses and maturities, Namfisa said.

On average, there has been a year- on-year growth of 11% in total premiums since the first quarter of 2011 for the industry.

The investment income fell to N$828 million from N$1,15 billion in the previous quarter.

The industry’s income exceeded expenses by N$887 million for the quarter.

The long term industry paid total benefits of N$1,20 billion consisting mainly of maturity claims, group member withdrawals and surrenders.

The medical aid fund industry membership increased by 842 members to 176 120 during the period.

The principal members increased by 1 192 while members, dependants and pensioners decreased by 243 and 107.

The industry received contributions of N$649 million for the first quarter, 10,7% more than the contributions received during the last quarter of 2013.

Contributions to retirement funds increased by 13,9% to N$4,4 billion during the year.

The value of loans disbursed by micro lenders declined by 22,2% or N$151,1 million to N$530 million in the first quarter of this year.

Source : The Namibian