The Namibian insurance industry experienced a lack of reinsurance services for many years with the result that most insurance companies, had to buy reinsurance business from abroad. Consequently large volumes of capital from the insurance industry left the country. It was against this backdrop that Namibia National Reinsurance Corporation (NamibRe) was established as a state-owned corporation by an Act of Parliament in 1998.
NamibRe was established as a Namibian enterprise with three main mandates. The first is that of providing reinsurance services locally in order to minimise the placement of insurance and reinsurance business outside the borders of Namibia. Secondly, minimising capital outflow would result in contributing to improving the countryís GDP and improve the countryís balance of payment position. Finally, it was envisaged that NamibRe would become a vehicle for overall empowerment and the enhanced participation by Namibians in the financial services sector of the Namibian economy.
NamibRe has since more than fulfilled its mandate. And although established as a national entity, it has managed to expand its business across numerous African countries. This is in line with Reinsurance business, which is international in nature.
True to its mandate to retain capital in country, the Corporation has grown its shareholder funds from the initial N$ 20 million ($1.43 million USD) (provided by government), to N$ 184 million ($11.88 million USD) as at 31 March 2017, which is the most recently reported financial year. To date, the Corporation returned total of N$ 101 million, ($5.25 million USD).
Giving the Namibian government a 406 % return on their initial investment.
The Corporation has been able to retain 79 % of the gross written premium of N$ 307 million ($15.03 million USD) in Namibia during the financial year ended 31 March 2017. NamibRe has also been the beneficiary of favourable credit from Moodyís investor services. Having been assigned a Ba1 financial strength rating with a stable outlook due to indirect intent from government.
NamibRe Core business: Reinsurance and classes of business
Reinsurance in its simplest sense is insurance for insurance companies. With the need for reinsurance arising from the fact that any insurance company can only accept risk if its balance sheet allows. The Corporation provides insurance and reinsurance services across; aviation, vehicles and associated liabilities, fire, engineering risks, guarantee business, personal lines, marine hull, cargo & liabilities and medical & life Insurance.
NamibReís vision is that of becoming the preferred insurance company in Africa. Accordingly, the Corporation has continued to develop business partnerships with several reinsurers operating in across Africa and abroad. In the next five years, the Corporation aims to grow their capacity further and augment the skills needed for insurance market development both domestically and regionally. Further, the Corporation strives to increase the dividends paid to the Namibian government and increase their significant contribution to the development of the Namibian economy.