CHAMWE KAIRA
Alexforbes Namibia reported a strong growth of 15%, which was attributed to an increase in multi-manager investment income, a growth in administration fees, the benefits of new business wins from the previous year, and inflationary growth.
Alexforbes Namibia’s revenue contribution to the overall Alexforbes Group in 2024 was N$74 million, compared to N$62 million in 2023, according to interim results for the six months ended 2024 and interim cash dividend declaration.
The company reported a 12% increase in Alexforbes Group operating income to N$2.1 billion.
This increase was attributed to the consolidation of acquisitions completed in previous financial years, higher average assets under management that benefitted from positive market performance, inflationary increases from our retirement and healthcare consulting client base, higher-than-expected two-pot claims volumes, and high client retention.
The group reported an increase of 11% in operating expenses of N$1.7 billion, which they attributed to the impact of fully consolidated acquisitions, higher personnel and technology costs, and higher two-pot related expenditures.
Organic growth in operating expenses was 8% year on year.
Profits from operations increased 13% year over year to N$447 million.
Profit from continuing operations improved 8% to N$367 million after taking into account the increase in finance costs and a marginally higher effective tax rate for the period.
Headline earnings per share from total operations increased 3% to 28.4 cents per share.
“The group balance sheet remains financially robust, supported by the sustained cash flow generated from continuing operations, with a sound regulatory surplus capital position of N$957 million and available cash of N$657 million,” the company said.
The group cover ratio of 1.9 times remains above the target solvency cover ratio of 1.2 times.
A gross interim cash dividend of 22 cents per share has been declared, which amounts to 88% of the normalised headline earnings per share. The dividend is up 10% year on year (2023: 20 cents per share).
Chief executive officer, Dawie de Villiers commented: “Alexforbes has played a leading role in advocating for and shaping the two-pot system, which will transform the future of retirement outcomes for all members for the better. It has been the focal point of our organisation over this period as we built up to 1 September by gearing up operations, member engagement, and our digital infrastructure. There have been lessons for us on this journey and we continue to scale up our technological capabilities to serve our 1.1 million members. We are uniquely placed at the intersection of regulatory shift, employee benefits and retail. This is an incredible opportunity to make an impact on people’s lives.”
