The Non-bank Financial Institutions (NBFIs) sector remains financially sound and does not pose any systemic risks to the country’s financial system. This is according to the Namibia Financial Institutions Supervisory Authority (Namfisa) who recently noted that during the second quarter of 2019 NBFIs’ total assets continued to increase, mainly driven by new investments and investment income returns. Namfisa figures from its quarterly statistical bulletin of 2019 Q2, released last week, shows that the industry remains financially sound and stable, backed by excess assets of N$9.5 billion,
Kenneth Matomola, CEO of Namfisa, said the industry’s total assets increased during the review period, despite the strong economic headwinds facing the country.
“Excess assets increased to N$9.5 billion sustaining the industry to remain financially sound and well-capitalised. The solvency ratio remained steady during the review period and the sector reported a Capital Adequacy Requirement ratio of 150 times, which is sufficient to withstand potential shocks,” said Matomola. The industry’s total assets increased by 1.8%, quarter-on-quarter, and 8.0%, year-on-year to N$59.4 billion. Both the quarterly and annual increases were mainly attributed to positive financial market performance.
Matomola added that total liabilities for the industry increased by one percent, quarter-on-quarter, and 8.6% year-on-year, at the end of the review period. The moderate quarterly increases emanated from growth in other liabilities during the review period. The yearly increases, on the other hand, were mainly attributed to notable growth in policyholder liabilities.
The Long-term Insurance (LTI) industry’s assets increased by 1.8%, quarter-on-quarter, and by eight percent, year-on-year to N$59.4 billion during the second quarter of 2019. Both the quarterly and annual increases were mainly attributed to positive financial markets performance.
The Short-term Insurance (STI) industry’s total assets increased moderately by 0.9%, quarter-on-quarter, and by 0.7%, year-on-year, to N$6.6 billion at the end of the review period. Both the quarterly and yearly marginal increase in total assets resulted from improvements in total investments. Meanwhile, the industry’s total liabilities marginally decreased by 0.5%, quarter-on-quarter, and increased by 3.2%, year-on-year to N$4.4 billion at the end of the second quarter.
The slight quarterly decrease in total liabilities resulted from a reduction in gross provision for unearned premiums.
2020-02-05 08:24:53 | 23 days ago