Old Mutual Namibia says its strong financial position will allow it to weather the deadly COVID-19 storm, allowing the business to continue playing a leading role in the local market.
“Our business is set up with long-term reserves to sustain the impact of pandemics, Old Mutual Namibia is therefore here to stay for a long run. A pandemic of the strength we have experienced will affect a company’s solvency and ability to continue doing business, I am proud to say Old Mutual remains well capitalised and defending its market share,” Old Mutual Namibia Group Chief Executive Officer, Tassius Chigariro told The Brief in an interview.
“Old Mutual has gone through good and rough seasons over the last 101 years we operated in Namibia and we have remained anchored as a financially strong, well-capitalised and well-governed business with capabilities that position us well to meet the changing needs of our customers.”
Chigariro noted that the repositioning of the giant insurer’s business in light of COVID-19, including the digitising of its services and the launch of new products, would be key in driving the business going forward.
“Combined with responsible investment in our investment group business, responsible lending in our lending business and ensuring peace of mind of our customer through our short-term insurance business, I am optimistic that we can continue to deliver our promise while exploiting new growth opportunities,” he said.
“This year has reminded us to always put customers first in our decision-making and we have realised the importance of integrating technology and digital solutions into our operating model so that we become more agile as an organisation.”
The Namibian insurance industry was affected by the global outbreak of the COVID-19 pandemic which led to unprecedented disruption and created material uncertainty. The successive lockdowns as well as other restrictions to manage the spread of the virus had a far-reaching negative impact on the level of aggregate demand and economic activity within the country.
The erosion of disposable income across the economy coupled with uncertainty over the ability of the sector to cover claims against the impact of the pandemic have resulted in a low appetite for insurance products.
The Old Mutual boss, however, remains optimistic that the Namibian insurance sector will remain resilient in the near term, supported by strong sector dynamics and relatively high insurance density and penetration.
“The impact of Covid-19 on the insurance industry has been severe, and it exposes companies not well capitalised to acquisitions, it is the nature of economic dynamics. Consolidation in a formalised market like Namibia is not a negative outcome and we will possibly see more of such mergers and acquisitions going forward,” Chigariro said.
