Namibia’s medical aid funds industry recorded a net surplus of N$229.7 million in the first quarter of 2025, driven by ongoing cost containment efforts and a steady claims ratio, the Namibia Financial Institutions Supervisory Authority (NAMFISA) has confirmed.
In its latest Quarterly Statistical Report, NAMFISA said the surplus contributed to an 11.6% quarterly and 46.2% annual increase in the industry’s accumulated funds, pushing total reserves to N$2.3 billion as at 31 March 2025.
“Reserve levels improved during the period, with the overall industry reaching 35.7%, well above the minimum prudential requirement of 25.0%,” the regulator stated.
Open medical aid funds reported a reserve level of 33.8%, while closed funds showed a significantly higher level at 66.5%. However, the report flagged one open fund representing just 0.1% of total membership as failing to meet the reserve requirement.
“This fund is required to submit to the Registrar strategies to meet the minimum prudential reserves requirement and to provide reports in respect of its performance,” NAMFISA said.
Membership numbers also showed modest growth. The industry recorded 220,652 beneficiaries by the end of March 2025, a 0.4% increase from the previous quarter and a 2.3% rise year-on-year. Principal membership grew from 93,677 in December 2024 to 94,651.
“The growth in membership was mainly driven by an increase in principal members without previous medical aid coverage in 2024,” the report noted.
The claims ratio stood at 79.7%, up from 76.3% in the previous quarter but down from 84.9% in the same period last year. The figure remains within the ideal range of 65.0% to 87.0%, according to NAMFISA.
“This reflects the effectiveness of the implemented measures by medical aid funds to control the rate of growing claims since the removal of COVID-19 restrictions, after which more elective and non-emergency health procedures were utilised by members,” the authority stated.
Eight registered medical aid entities were operational during the quarter. The industry’s loss ratio reached 89.1%, slightly higher than the previous quarter but lower than the 94.1% reported in March 2024.
“Maintaining a loss ratio that is lower than 100.0% indicates the industry’s ability to settle all its expenses without having to rely on investment returns, other income, or the liquidation of investments,” NAMFISA said.
