CONDITION OF NIS IN FIRST HALF OF 2025
In the first half of 2025 (January 1st – June 30th), the performance of the National Insurance Services (NIS) can be described as one of exceptional progress.
The NIS has achieved a strong financial turn-around; and it has also advanced further its operational resilience and the public’s trust in it.
The strong financial performance of the NIS in the first half year of 2025 has been driven by three critical indicators, namely: contribution incomes; investment returns; and arrears recovery. Accordingly, a net profit of $16.5 million was recorded for the first half of 2025 compared to a net loss of $5.5 million for the same period in 2024.
Operational resilience gained momentum through the advancement of the human resource (HR) assessment and the completion of the digital transformation assessment.
Public trust in the NIS was further strengthened, objectively, through proactive engagement of the NIS with the public, publication of the NIS reform proposals, and the completion (and publication) of the NIS’ financial statements for the year ended December 31, 2024, all critical public trust-related issues.
FINANCIAL STRENGTHENING
The summary of the vital data on the financial strengthening of the NIS in the first half of 2025, is as follows:
(1) Contribution income rose to $55 million, as compared with $38.0 million in the same period in 2024, an increase of 45 percent. This growth was driven by four main factors: the increase in the number of insured persons; employer compliance; the expansion in insurable wages; and the adjustment of the combined contribution rate of employer and employee from 12 percent to 13 percent.
The insured population at the NIS in the first half of 2025 increased by 3 percent from 44,766 to 46,318, reflecting the buoyancy of the economy, increased employment, and the improvement in employer compliance.
Insurable wages increased over the comparable half-year period (first half 2024 to first half 2025) from $2,284.44 to $2,468.00, an 8 percent increase.
(2) The increase of Investment income was also very impressive over the same period, amounting to $16.2 million in 2025 compared to $10.9 million in 2024, an increase of 49 percent. This is as a result of strong receipts on interest payments and dividends from the NIS investments as well as unrealized capital gains from international equities. The total investment portfolio of the NIS increased from $441.3 million in the first half of 2024 to $479.70 million in the first half of 2025, yielding an annualised return of a commendable 7.5 percent, compared to 4.8 percent in 2024.
NIS EXPENSES
The Benefit Expenses of the NIS in the first half of 2025 compared to the first half of 2024 increased in line with projections from $47.8 million to $49.0 million. This increase is as a result of two main factors: (i) the continued generosity of the NIS benefit regime for pensioners and other beneficiaries (sickness benefits, etc.), and an increase in the number of pensioners from 9,443 to 9,605.
Administrative Expenses at the NIS increased marginally over the first-half year reporting period from $4.9 million to $5,3 million due to a growth in subscriptions, depreciation of software, and staff expenses (an increase here from $154,000 to $258,000). The administrative expenses were thus controlled below the 10 percent threshold. The NIS is striving always to be more cost conscious, particularly in the procurement of goods and services.
OPERATIONAL RESILIENCE
The NIS is strengthening its operational resilience in a number of critical ways, namely: conducting a Strategic Human Resource (HR) Audit by the firm, KPMG; pursuing a Digital Readiness Assessment; Cyber Security Training; and elaborating a Business Continuity Policy through the Risk and Information Technology Department.
UNEMPLOYMENT BENEFIT PROPOSAL
The NIS is in the process of reviewing a requested proposal from the ILO in respect of the 13th Actuarial Review of the NIS, and a feasibility study for the imminent introduction of the payment of unemployment benefit to the persons insured under the NIS. The ULP government expects, too, that the Actuarial Review will recommend an increase in NIS pensions, not just minimum pensions but all pensions. The insured persons under the NIS would welcome greatly the introduction of an unemployment benefit and an increase in pensions.
SOME CONTINUING CHALLENGES
As always, the NIS in SVG operates in the volatile, uncertain, complex socio-economic environment of a vulnerable, small-island developing state, subjected to external economic shocks and climate-change related matters. The vulnerabilities affect employment, economic growth, and thus contributions’ incomes; but the government and the NIS have instituted measures to absorb these shocks as are reasonably practicable. Our experiences have taught us to be prudent and enterprising, wise and mature in our judgements.
Other challenges include: Low compliance rates among small and medium-sized businesses, the construction sector, domestic workers, and farm workers; significant coverage gaps for self-employed and informal sector workers (fisherfolk, vendors, farmers, etc.); and less-than-optimal performance issues in the area of Human Resource management.
REAL ESTATE OF NIS
Among the major real estate developments in which the NIS is involved relate to the continued development of the Peter’s Hope development which has been accorded renewed impetus with other partners (GECCU and BOSVG), and the starting-up shortly of the construction of an Office Complex at the former Ju-C Building at the entrance of capital city, Kingstown.
WE ARE PROUD OF THE NIS
A year or so ago, the ULP government and the NIS embarked on a strategic reform of the NIS. The opposition NDP played its usual irresponsible and lying games about the NIS. We (government and NIS) calmly explained our reform plan for the NIS to maintain the NIS’ continued sustainability. The wise and mature Vincentian public (by far the bulk of our people) listened carefully and supported the Plan. We are seeing the early fruitful results of the Plan. Over the next 30 or so years, and continuing, there will be challenges to be addressed and hiccups to be resolved. We must continue to be wise and mature. By then, the NDP as a political institution is likely to be dead, if it continues its old, malignant play-book. Unless, it renews itself, it will die. The ULP, on the other hand, will survive and thrive long after its current leaders have transitioned to another place, because refreshing and renewing itself are in our DNA.
Meanwhile, the other major financial of the state, the Bank of SVG is doing very well. Again, political leadership counts mightily.
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