The long-term insurance (LTI) sub-sector in Namibia remained generally stable in 2025, despite a less favorable environment. Gross premiums issued amounted to 14.4 billion Namibian dollars (approximately $880 million USD), a slight decrease of 0.1% compared to 2024. This result marks a significant slowdown after the 26.8% increase recorded the previous year, partly due to asset transfers from pension funds to a life insurer, according to a report published in April 2026 by the Central Bank and NAMFISA, the insurance regulator.
Reinsurance cessions remained limited to 666 million Namibian dollars (approximately $40.7 million USD), a ratio of 4.6%. This level remains consistent with the sector’s structure, dominated by savings and investment activities.
The total assets of the sub-sector reached 97.1 billion Namibian dollars (approximately $5.9 billion USD) by the end of 2025, up 15.8%, after 12.9% in 2024. Liabilities towards long-term policyholders increased by 17.5% to reach 79.8 billion Namibian dollars (approximately $4.9 billion USD). Equity and reserves reached 13.2 billion Namibian dollars (approximately $808 million USD), representing 13.6% of total assets.
A sector largely dependent on investment income
The investment portfolio amounted to 88.9 billion Namibian dollars (approximately $5.4 billion USD), accounting for 91.6% of total assets. Its distribution was between domestic markets (49.2%) and international markets (50.8%).
Prudential indicators show a generally stable situation: solvency, liquidity, and adequacy of capital have remained within their historical ranges. However, technical profitability and risk structure have deviated from their usual levels, calling for increased vigilance from authorities.
The report highlights that the sector’s profitability largely relies on investment income, while the technical results of risk transfer activities remain structurally negative. Such a configuration is common in life insurance, but it makes the sector more exposed to a sustained deterioration in market conditions.
The LTI segment is part of the Namibian non-banking financial sector, alongside short-term insurance, pension funds, medical aid funds, and collective investment schemes.
