The Namibia Medical Care (NMC) concluded the 2023 financial year with a surplus of N$56 million despite exceeding premium income to N$1.88 billion with insurance expenses at N$1.93 billion.
Methealth Namibia Chief Financial Officer Carlien Van der Merwe said this marks a significant improvement from the previous year’s N$115 million deficit, reflecting effective financial management and strategic investments.
“For the 2023 financial year, we had a total of N$1.88 billion in premium income. However, our insurance expenses amounted to N$1.93 billion. This initially indicates a deficit. Nevertheless, thanks to a successful financial investment year, we achieved a surplus of N$56 million for 2023,” she said.
Comparatively, she said the 2022 financial year was more challenging, with reserve levels under pressure.
Van der Merwe noted the adoption of IFRS 17, a new standard for insurance requiring retrospective application.
Under IFRS 17, NMC is now recognized as a mutual entity, reflecting liabilities to members rather than reserves in financial statements.
At the end of 2022, NMC’s liability to members was N$390 million, increasing to N$445 million by the end of 2023.
Insurance liabilities decreased from N$210 million in 2022 to N$178 million in 2023, largely due to a reduction in claims.
“Our surplus for 2023 was N$54 million, a significant improvement from the N$115 million deficit in 2022,” added Van der Merwe.
Meanwhile, NMC saw a 5.4% increase in principal members, rising from 31,387 at the end of 2022 to 33,077 at the end of 2023.
Mweneni Mungeyi, Fund Actuary, highlighted the importance of maintaining competitive benefits amidst higher claims and global economic hardships.
“The contributions and benefits of all the options offered by NMC are reviewed annually to ensure relevance and competitiveness,” she said.
