Last week, Namibia National Reinsurance Corporation Ltd (NAMIBRE) declared dividends of N$ 3.5 million which is N$ 1.5 million more than the previous year.
The amount declared is 20% of the net profit after taxation of N$17.5 million for the 2016 financial year ended March 2016.
Annually State Owned Enterprises (SOEs) such as NAMIBRE are committing to government by declaring their dividends, to enable government to fund national projects.
These dividends are declared to ministry of Finance.
Deputy Minister of Finance Natangue Ithete applaud NAMIBRE’s prudent management stating that despite challenges faced by global and regional markets, especially the financial markets where the insurance and re-insurance is operating, NAMIBRE was still able to optimize the returns.
“Besides taxes in the range of N$61 million to date, the total return in the form of divided paid to State amounts to N$12.6 million since the establishment of the Corporation in 2002.This is equivalent to 63%, when compared to initial investment of N$20 million that government laid down at its establishment,” Ithete said.
Ithete urged all other SOEs that are in the commercial nature to employ self-financial dependency as SOE’s are expected to be financially self-reliant to contribute to the financing of program and share their profits with their shareholders.
“SOE’s must adopt a sound system for mobilization, utilisation and management of public funds. These include efficient procurement systems that will optimize shareholder value for money an investment policies that ensure safe custody of institutions asset and their optimal growth to optimize shareholder value,” the deputy minister said.
Phillip van Schalkwyk, Executive Manager of Operations and Strategy, said that the N$1.5 million increase in the dividends checque was caused by smart working strategies and also qualifies workers that are employed by their organisation.
Commenting on the same segment Vice-Chairperson of the NAMIBRE Board of Directors, Libertha Kapere, added that NAMIBRE will continue to work hard to enhance the performance of the corporation to declare dividends annually.
‘’Government notices on the per policy cession supported by other internal strategies to grow the corporation’s revenue as per the strategic plan of the Corporation, contributed to NAMIBRE’s positive results,” Kapere said.
Kapere also added that the payment of dividends to government is vital, therefore the goal of NAMIBRE is to maintain the dividend payment whilst at the same time securing the future of the Corporation by investing wisely.
NAMIBRE was incorporated in the country with interest in the insurance industry. The Corporation is the only reinsurer in Namibia, and provide reinsurance to all Namibian insurance companies. In terms of the Namibia National Reinsurance Corporation Act, insurance companies are obliged to present 20% of the all their underwritten insurance to the corporation. The corporation provide both long-term and short term reinsurance.
Annual financial statements of NAMIBRE has been prepared in accordance with International Financial Reporting Standards and the requirements of the companies act of Namibia. The core mandate of NAMIBRE is to ensure that local savings are retained and invested in Namibia.