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Namibia National Reinsurance Corporation Limited
Namibia National Reinsurance Corporation Limited (2021-12)
NamibRe’s earnings were maintained within an intermediate level, supported by a favourable claims experience balancing off an increase in net commission expenses. The favourable claims experience was driven by reserve normalisation following a build-up in reserves in anticipation of COVID-19 related risks, while elevation in acquisition costs reflects aggregation of commissions relating to the enforcement of policy cessions dating back to 2018. In this respect, the loss and commission expense ratios registered at 37% and 46% in FY21 (FY20: 65% and 26%) respectively, with the underwriting margin stabilising at 1%
The Stable Outlook reflects expected stabilisation in earnings, while risk adjusted capitalisation and liquidity metrics may be maintained within a strong range. The business profile is likely to remain unchanged over the outlook horizon. The ratings may be upgraded on sustained improvement in earnings, while maintaining strong risk adjusted capitalisation and liquidity.