Annual Report 2015
ANNUAL REPORT ERRATUM
2015 NBFIRA Annual Report
Page 8: Corrected as hereunder
Developments in the Non-Bank Financial Institutions Sector
The NBFI sector continued to experience growth both in the number of companies providing non-bank financial products and services in Botswana. This augurs well for competition and the benefits it brings to the development of the market and customer services as well as fair pricing. Total assets of all sectors with exception of insurance brokers increased by 2 % to P94 billion as at December 31st 2014 from P92.5 billion[1] as at December 31st 2013. Insurance brokers however experienced a decrease of 26.7% to P374.3 million as at December 31st 2014 from P512.0 million as at December 31st 2013 due to assets base contractions of Marsh Group of companies, AON Botswana (Pty) Limited and Dynamic Insurance Brokers (Pty) Limited.
In general, the NBFI sector remained profitable and was able to augment its capital positions, save only for two insurance brokers whose capital decreased, albeit remaining solvent. Solvency is a key factor for continued operation in the financial market in accordance with the provisions of both the NBFIRA Act and the other financial services laws. In that regard, a few entities were required to restore solvency of their operations and failure resulted in statutory management and/ or liquidation. Maemo Cell Insurance Company (Pty) Limited was liquidated and RED Employee Benefit Scheme (Pty) Limited was put under statutory management following solvency challenges.
