The National Insurance Services (NIS) turned its 2023 net loss of $430,000 into an estimated net profit of $22.9 million in 2024.
Minister of Finance Camilo Gonsalves says this improvement was made possible by important reform measures by the government: economic growth, improved job creation, strong contribution collection, robust investment performance, and financial prudence.
In 2024, the NIS collected a record-breaking $95.4 million in contribution income, up from the previous year’s $76.1 million.
“This represented a 25 percent growth in contribution income. The growth can be attributed to the increase in the contribution rate from 10 percent to 12 percent, the rise in minimum wages, the increase in the insurable wage ceiling from $1,000.00 per week to $1,200.00 per week, and the efficient management of arrears by improving compliance”.
The increase in the insured population from 44,950 to 46,321, coupled with the rise in average insurable wages, was also a major contributor to this collection record, Minister Gonsalves stated.
Gonsalves said the NIS achieved another record-breaking performance in the management of its 2024 Investment Portfolio.
“This was backed by a strengthening domestic economy and financial conditions, attractive interest rates, and a strong international stock market. Preliminary results indicate that the portfolio generated investment income of $33.5 million, or 7.2 percent in returns, which is comfortably above the actuarial hurdle rate of 4.0 percent.”.
“This 2024 performance represents a 41.0 percent increase over the $23.7 million generated in 2023. From an asset class perspective, $12.4 million from the fixed income portfolio and $21.1 million from equities supported the NIS’s investment performance. Additionally, domestic, regional, and international assets generated $13.3 million, $6.0 million, and $14.2 million, respectively”.
Gonsalves said administratively, the strategic management of the NIS’ resources resulted in a $1 million reduction of operating expenses compared to the previous year.
“The NIS also moved from spending 14 cents of every contribution dollar to spending 10 cents of every contribution dollar collected. This improved administrative performance aligns with regional averages,” Gonsalves stated.
