NASRIA declares millions in dividends
The company had positive returns on its fixed income investments, with total interest income of N$29.3 million
PHILLEPUS UUSIKU
Despite the harsh economic conditions, Namibia Special Risks Insurance Association (NASRIA) still managed to stay true to their mandate and bring positive results to the shareholder.
The only special risks insurer in Namibia which serves as a special niche that is imperative for national development by providing cover against damage on property and labour disturbances, amongst others, declared dividend of N$6.8 million to the government on Monday.
Speaking at the handover ceremony, Adrianus Vugs, board chairperson of NASRIA notes that despite the effects of the Covid-19 pandemic, the company remains financially sound with sufficient financial reserves to mitigate the risks underwritten.
“In terms of Insurance operations, gross written premiums increased by 12% to N$62.1 million while the net written premiums increased by 14% to N$48 million. Net premiums earned increased by 8% resulting in an underwriting surplus increase of 21% to N$38.4 million,” Vugs pointed out.
In terms of investments, the company had positive returns on its fixed income investments, with total interest income of N$29.3 million. Dividend income from listed equity investments rose to N$2.5 million.
“We suffered capital losses of N$2.5 million due to falling markets at the time of reporting and we are not immune to the effects of the Covid-19 pandemic which had a global impact financially,” he said.
Outlook
The chairperson encouraged small and medium enterprise’s (SME’s) to take advantage of the Namibia Financial Sector Strategy Credit Guarantee Scheme as it functional through all local commercial banks.
The rationale behind the scheme is to ensure that SME’s with excellent prospects for success and have viable business plan, but lack collateral to obtain loans.
Commercial financial institutions require the security of collateral to ensure that their capital is preserved in the event of an SME being unable to repay their loans, he said.
Apart from the Credit Guarantee Scheme, the company is busy with a feasibility study for the Namibia Agricultural Insurance scheme aimed at assessing farmers in rural areas.
The study aims at understanding of risks associated with crop loss, their preparedness and contingency planning in the event of long dry spells and crops being destroyed due to pests and diseases.
Furthermore, the feasibility study will also assess the extend to which prescribed insurance products would be attractive and affordable to farmers, evaluate the demand for insurance products in agriculture and gauge how a good, affordable insurance product can be positioned effectively.
Despite the harsh economic conditions, Namibia Special Risks Insurance Association (NASRIA) still managed to stay true to their mandate and bring positive results to the shareholder.
The only special risks insurer in Namibia which serves as a special niche that is imperative for national development by providing cover against damage on property and labour disturbances, amongst others, declared dividend of N$6.8 million to the government on Monday.
Speaking at the handover ceremony, Adrianus Vugs, board chairperson of NASRIA notes that despite the effects of the Covid-19 pandemic, the company remains financially sound with sufficient financial reserves to mitigate the risks underwritten.
“In terms of Insurance operations, gross written premiums increased by 12% to N$62.1 million while the net written premiums increased by 14% to N$48 million. Net premiums earned increased by 8% resulting in an underwriting surplus increase of 21% to N$38.4 million,” Vugs pointed out.
In terms of investments, the company had positive returns on its fixed income investments, with total interest income of N$29.3 million. Dividend income from listed equity investments rose to N$2.5 million.
“We suffered capital losses of N$2.5 million due to falling markets at the time of reporting and we are not immune to the effects of the Covid-19 pandemic which had a global impact financially,” he said.
Outlook
The chairperson encouraged small and medium enterprise’s (SME’s) to take advantage of the Namibia Financial Sector Strategy Credit Guarantee Scheme as it functional through all local commercial banks.
The rationale behind the scheme is to ensure that SME’s with excellent prospects for success and have viable business plan, but lack collateral to obtain loans.
Commercial financial institutions require the security of collateral to ensure that their capital is preserved in the event of an SME being unable to repay their loans, he said.
Apart from the Credit Guarantee Scheme, the company is busy with a feasibility study for the Namibia Agricultural Insurance scheme aimed at assessing farmers in rural areas.
The study aims at understanding of risks associated with crop loss, their preparedness and contingency planning in the event of long dry spells and crops being destroyed due to pests and diseases.
Furthermore, the feasibility study will also assess the extend to which prescribed insurance products would be attractive and affordable to farmers, evaluate the demand for insurance products in agriculture and gauge how a good, affordable insurance product can be positioned effectively.
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