Namibian Standard of Actuarial Practice 104 (NSAP 104) governs the financial soundness valuation of long-term insurers and reinsurers, the solvency basis on which a life insurer values its liabilities and capital requirements. Published in 2018, NSAP 104 became the operative basis for solvency reporting only in May of this year, under the Financial Institutions and Markets Act (FIMA). This means most Namibian life insurers are now producing a FIMA solvency valuation and an International Financial Reporting Standard 17 (IFRS 17) financial statement in the same year for the first time. It is common to be able to run the solvency valuation and the IFRS 17 measurement as one exercise instead of two, and NSAP 104 gives the lever to align these, within limits.
In this note—written for valuators, actuarial teams, and chief financial officers—we cover why insurers should align their Namibian solvency valuation with IFRS 17 and how far NSAP 104 supports it, and offer some practical steps.
Key discussion points include the following.
- Two liabilities built from comparable parts: Where the valuation elements for NSAP 104 and IFRS 17 can differ.
- Why align the total liabilities: Two separate areas to consider.
- NSAP 104: How far it lets insurers go, and which alignment to choose.
- How to treat discount rate differences: Using a single discount-rate yield curve for both bases.
- Suggested practical steps for Namibian insurers: Single best estimate, total liability, and discretionary margin.