The Namibia National Reinsurance Corporation (NamibRe) has declared a N$6.15 million dividend for the financial year ended 31 March 2018, representing 20 percent of its net profits after tax.
The government owned reinsurance company said the dividend amount declared during the period under review, represents a 23 percent growth from the amount declared during the previous financial year (2017), which stood at N$5 million.
“The dividends declared by the Corporation has increased gradually for the past couple of years from N$1,8 million declared in the 2014 FY to the current amount of N$6.15 million. The annual declaration of dividends is in line with the provisions of the NamibRe Act and the dividend policy, which requires the Corporation to declare dividends to the Shareholder at the end of each financial year. The dividend amount is determined and agreed upon through a consultative process between the Minister of Finance (as representative of Shareholder) and the Board of Directors of the Corporation,” the company’s General Manager: Corporate Affairs & Strategy, Ntwala Mwilima said.
“The dividend amount was agreed upon at the Annual General Meeting (AGM) held on the 29th November 2018.”
She attributed the increase in the company’s profits to its adoption of strict underwriting and risk management strategies.
“The Corporation was able to declare the highest dividend since its establishment due to the fact that the profitability of the Corporation increased substantially from N$14.7 million (2014FY) to N$43.3 million (2018FY), representing a 194 percent growth in net profits.”
She said the company will continue to operate profitably, while meeting its mandate of providing reinsurance cover at international standards to insurance markets, inside and outside Namibia.
“The Corporation is committed to declaring dividends to the Shareholder as part of good Corporate Governance and also as part of its responsibility to the Shareholder and the Namibian nation. Having declared dividends consistently over the last couple of years, the Corporation once again reiterates its commitment to the shareholder to remain financially viable and be able to continue paying dividends and supporting its shareholders and the country at large.”