Momentum Metropolitan says its Namibian life insurance business paid out 393 COVID-19 claims totaling over N$40.6 million in the 2021 financial year.
This comes as the South African financial services company recorded a 60% jump in mortality claims from its Africa business in the second half of F2021.
Momentum Metropolitan’s Africa business is made up of operations in Namibia, Lesotho and Botswana.
“While Momentum Metropolitan Africa had not experienced significant increases in claims because of COVID-19 during the first half of F2021, a marked increase was observed in Group Life products across Botswana, Lesotho and Namibia during the second half of F2021. Mortality claims across the three countries were 60% higher in the second half compared to the first half of F2021,” the company told The Brief.
Momentum Metropolitan said strong corporate business growth in Namibia, Lesotho and Botswana had contributed to a 7% increase Present Value of New Business Premiums (PVNBP) for its Africa business to N$2 843 million.
“The value of new business was negative, largely due to lower new business volumes and a shift towards lower margin corporate and annuity products in Botswana. This was partially offset by good new business volumes in Namibia. The decline in the value of new business of Momentum Metropolitan Africa led to a decline in the new business margin from 0.7% in the prior period to -0.1% in F2021.
The financial services company was, however, upbeat about the growth prospects of its Namibian business despite the current economic downturn and the negative impact of COVID-19.
“Despite the multi-year recession in the Namibian economy and the impact of COVID-19, the Group still sees opportunities for the Namibian business in the coming years.”
In the period under review, Momentum Metropolitan Holdings operating profit declined by 93% in the 12 months to June because of Covid-19 claims, after the insurer was forced to set aside an additional COVID-19 provision of R2.2 billion before tax, of which R2.1 billion was related to death claims alone.
Momentum Metropolitan Holdings said in the year ended on 30 June, its total mortality losses, related to death claims, stood at R2.83 billion. The other contributor to the decline in Momentum Metropolitan Holding’s operating profit was the group’s provisions for anticipated future impacts of possible successive waves of COVID-19 infections.
