NBFI sector’s assest increases by 9 per cent

The Non- Banking Financial Institutions (NBFI) sector’s asset base increased by 9 per cent to N.dollars 316 billion during, chief executive officer of Namibia Financial Institutions Supervisory Authority, Kenneth Matomola, said.

Speaking at the launch of the authority’s 2019/20 annual report, Matomola said the year-on-year growth in relation to the same period in 2018 was chiefly evident in pension fund assets, whose gains were attributed to growth in investment income.

‘The expansion in assets reflected an improved equity market performance during the review period. The insurance industry remained resilient and robust during the reporting year, despite Namibia experiencing challenging economic conditions. A positive performance from financial markets was responsible for strong growth in the industry’s assets, with the long-term insurance industry, whose assets grew by 6.2 per cent to N.dollars 60.2 billion for the review period,’ he said.

Matomola added that a similar trend emerged for the short-term insurance industry, where the asset position showed a 4.4 per cent rise to N.dollars 6.8 billion in comparison with the previous financial year.

The medical aid fund industry remained financially sound during the period as it maintained a reserves level above the minimum prudential requirement of 25 per cent. The number of beneficiaries increased by 3.1 per cent to 201,914 as at 31 December 2019, in comparison with the previous financial year. Moreover, for the first time in over five years, the growth in this industry’s assets exceeded 3 per cent.

The pension fund industry maintained its funding level above the prudential limit of 100 per cent during the reporting year.

‘Total pension fund investments including insurance policies increased by 8.8 per cent year-on-year to N.dollars 172.5 billion. Investments in insurance policies alone accounted for 12.6 per cent of total investments,’ he said.

He added that he NBFIs balance sheets, as reflected in the data collected by Namfisa, remained financially sound, well-capitalized and solvent. Thus, NBFIs continued to be financially sound and stable during the review period, he added.

Source: Namibia Press Agency