THE National Social Security Authority (NSSA) recorded a 329,7% boost in profit after tax to $105,87 million for the financial year ended December 2016 on the back of fewer write downs and improved contributions.
BY TATIRA ZWINOIRA
The growth was from a comparative profit after tax of $32,11 million recorded in 2015.
In a statement accompanying financial results for 2016 yesterday, NSSA chairperson Robin Vela said despite the adverse economic conditions, contributions and incomes increased by 12%.
“Despite the economic challenges characterised by company closures, contributions and premiums increased 12% as a result of employers being engaged and contributing voluntarily. The Authority embarked on a rigorous awareness campaign to educate the population about NSSA and as a result we have seen a 3% year on year increase in benefits pay-outs as more retirement pensioners registered for pension benefits,” he said.
“The Authority has also continued to pay its pensioners consistently throughout the year and has availed various payment platforms for pensioners to choose from to receive their benefits.”
The performance led to an increased overall performance of the group’s overall profitability registering a 417,2% increase in profit after tax to $116,83 million from a previous of about $28 million in the previous timeframe in 2015.
Contributions for the period under review which helped boost NSSA’s profits were up to $276,52 million from 2015’s comparative period’s $242,76 million.
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Premiums also went up to $51,16 million in the period under review from $50,2 million recorded in same time frame of 2015.
Cash received from contributions, premiums and other incomes (excluding investment income) for the group rose to $423,7 million for the 2016 period up from $354,34 million recorded in 2015.
However, of cash received from contributions, premiums and other incomes (excluding investment income), $357,92 million was paid to suppliers, claims and employees which was up from a 2015’s comparative period’s $315,4 million.
Despite recording higher profits for the year under review, the share profits from associates were down.
“The share profits from associates was $11 million in 2016 compared to $12,6 million realised in the prior year. The decline in share of profits arose from the significant loss of $1,7 million recorded by the Rainbow Tourism Group which is an associate company,” NSSA general manager Liz Chitiga said.
In terms of expenses, the group’s overall expenses were up to $366,94 million in the period under review from $336,01 million over the same period in 2015.
Contributing to the increment, to a smaller extent, was director’s receiving higher fees for the period recording a 16,8% increase to $884 858 in the period under review from $736 162 in the 2015 comparative period.
