NamibRe asset base grows to N$1 billion
Namibia National Reinsurance Corporation (NamibRe) CEO Patty Karuaihe-Martin says the reinsurer has been able to grow its assets to just more than N$1 billion over a five-year period, demonstrating growth at the state-owned reinsurer.She shared the milestone ahead of the submission of the company’s new strategic plan, which outlines NamibRe’s future projects.
“We have grown our grown written premiums from N$171 million to N$858 million, which is an impressive growth over the space of eight years. Our unallocated premium income has also moved from N$69 million to N$76 million. Another impressive growth is our assets - we have gone from N$210 million to over N$1 billion. We are priding ourselves [on the fact] that we could reach the N$1 billion target that we set [for] ourselves, as well as our total assets,” she said while providing an update on the reinsurer’s activities at the Government Information Centre this week.
As part of its strategic focus, NamibRe was looking to grow its service offering outside of Namibia and had created an agricultural risk product for the government.
“We will grow our revenue from non-policy sources. The key thing is to expand the business in the foreign markets and product development. We have also started a product where we are looking at how we can support the government with a sovereign risk product of risk government, specifically for the agricultural sector,” Karuaihe-Martin said.
Sustainable growth
While the emphasis is on growth, the CEO emphasised that it will need to be done in a cost-effective way.
“We are also looking how to broaden and diversify our investment income, prudent cost containment strategies... That’s important to make sure that when you grow your business, it is growing at a sustainable rate."
NamibRe is looking at realigning its business strategy following an out-of-court settlement it reached with players in the insurance industry.
“We had an agreement that we signed with the local industry, and we are looking forward to implement it. Obviously, the strategic plan will be the foundation and it will prepare the corporation for future operations. We will align its strategy, its strategic intent," Karuaihe-Martin said.
“We also want to pave the way for some components of our agreement that we have done with industry, that is where NamibRe will focus on recapitalisation,” she added.
NamibRe reported a total comprehensive income for the financial year ended March 2021 of N$9.9 million. The company's gross premium written amounted to N$622 million, while premiums ceded to reinsurers totalled N$196 million.
It declared a dividend of N$10 million to the government in the same reporting period.