Namfisa regulated institutions record growth

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Namfisa regulated institutions record growth
Namfisa regulated institutions record growth

Africa-Press – Namibia. THE Namibia Financial Institutions Supervisory Authority (Namfisa) regulated 650 entities with total assets worth N$354,2 billion during the third quarter of 2021.

This is contained in the Namfisa Quarterly Statistical Report for the third quarter of 2021, released yesterday. The report provides industry statistics, the latest industry trends and developments and also information regarding Namfisa’s regulatory and supervisory activities during the quarter under review.

According to the report, the non-banking financial institutions’ assets increased annually by 11,6%, and by 2,0% on a quarterly basis at the end of the third quarter of 2021.

“The increase in assets is mainly due to improved performance in the financial markets following uncertainties created by the Covid-19 pandemic during the 2020 financial year,” stated the report.

The long-term insurance industry’s total assets increased by 9,5% year-on-year to N$65,1 billion during the review period, with a positive performance in the industry’s investments mainly contributing to the growth in total assets. The total assets for the short-term insurance industry increased by 19,9% year-on-year to N$7,6 billion as at 30 September 2021.

“An increase in the value of total investments of the industry contributed to the yearly growth in total assets, with recovery in the financial markets over the last quarters contributing to growth in the industry’s investments,” the report added.

According to Namfisa, the medical aid fund industry held assets totalling N$2,1 billion as at 30 September 2021, a decrease of 1,3% on an annual basis.

“The marginal decrease in total assets was a result of continued relatively high healthcare claims expenses during the quarter under review,” said the supervisory authority, adding that retirement funds’ total assets increased by 16,8% year-on-year to N$202,4 billion during the period under review.

“The growth in retirement fund assets was driven by positive returns on investment assets. The friendly society’s industry assets increased by 11,1% year-on-year to N$2 million as at 30 September 2021.

Contributions in respect of the only friendly society are normally received in-person by the society, and the easing of restrictions year-on-year resulted in outstanding balances being settled by many members of the society. Similarly, investment income was observed to grow significantly year-on-year in keeping with the developments in financial markets,” Namfisa said.

The regulatory authority said growth in the friendly society’s industry assets is therefore attributable to higher contributions and financial market performances.

The investment managers’ assets under management increased by 9,9% on an annual basis to N$199,6 billion at the end of the third quarter of 2021. The increase in assets under management was mainly due to a combination of market recoveries and inflows, as governments and central banks around the world maintained stimulus measures, the report explained.

It further said the total assets of the collective investment schemes (CIS) under management increased marginally by 0,1% year-on-year to N$76,1 billion.

“The CIS continued to invest mostly in Namibia, with local investments constituting 62,0%, followed by the common monetary area at 30,4% of the total assets invested. Assets administered by linked investment service providers for the quarter ending 30 September 2021 increased by 1,6% to N$14,4 billion, compared to the previous quarter.”

In terms of geographical allocations, the report says it is indicative that Namibian domiciled assets constituted 60,5% of total assets with a total of 39,5% of assets under administration invested outside Namibia.

The value of the loan book increased by 11,6% to N$7,1 billion at the end of the period under review, according to the report. “This trajectory in the value of the stock was also reflected in that of the flows, particularly that of the disbursements and arrears,” the report said.

According to Namfisa, the supervisory authority’s complaints department received 213 complaints from consumers of financial services during the period under review and of these, 164 complaints, representing 77,0% were resolved as at end September 2021.

Consequently, an amount of N$1,9 million was recovered from financial institutions in respect of the complainants against them during the review period and refunded to consumers.

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