Namibia’s medical aid funds industry recorded a net surplus of N$129.5 million in the third quarter of 2025, according to the Namibia Financial Institutions Supervisory Authority (NAMFISA).
The regulator said the industry’s assets remained sufficient to fully cover liabilities during the period, while reserve levels increased and stayed above the minimum prudential requirement of 25%.
NAMFISA reported that reserves strengthened during the quarter, reflecting sustained investment performance and the impact of cost containment measures implemented across the sector.
The industry comprised eight registered medical aid funds during the period under review. Asset concentration remained high, with the three largest funds accounting for more than 80% of total industry assets as at 30 September 2025.
“The industry remained financially stable during the review period, supported by adequate reserves and sufficient asset coverage. Prudential compliance continues to be a key indicator of the sector’s resilience under prevailing cost pressures,” NAMFISA said, adding that it will continue to monitor financial performance to ensure long-term sustainability.
Total industry membership rose to 223,961 beneficiaries as at 30 September 2025, representing quarter-on-quarter growth of 0.8% and year-on-year growth of 2.4%. Growth was recorded across all beneficiary categories.
NAMFISA noted that the largest increase was among pensioner beneficiaries, pointing to demographic shifts within existing medical aid schemes. Non-pensioner principal members increased, while non-pensioner dependants declined slightly during the quarter.
The regulator said overall membership growth remained moderate, reflecting constrained household affordability and broader economic pressures.
“Membership trends continue to reflect demographic changes within existing schemes rather than new market expansion. The increase in pensioner beneficiaries highlights long-term pressures on benefit structures and claims profiles,” NAMFISA said.
The industry’s claims ratio stood at 88.6% for the quarter ended 30 September 2025, remaining above the upper limit of the ideal benchmark range. Elevated claims continued to place pressure on contribution income available for non-healthcare costs.
Despite the high claims environment, total industry investments increased to N$2.7 billion, supported by the consistent reinvestment of investment income since the fourth quarter of 2023. NAMFISA said cost containment measures reduced the need to liquidate investments to settle expenses.
Accumulated funds and reserves increased to N$2.6 billion, with the overall reserves ratio rising to 39.7%. One open medical aid fund failed to meet the minimum prudential requirement and remains under close regulatory monitoring.
“Sustained claims pressure remains a structural challenge for the medical aid funds industry. However, improved investment performance and disciplined cost management have supported reserve growth. Regulatory oversight remains focused on the early identification of emerging risks,” NAMFISA said.
