Imbert: NIB increases revenue, beneficiaries

THE National Insurance Board (NIB) has reported increases in revenue, the number of beneficiaries and employers registering with it in the last financial year, which ended on June 30.

Finance Minister Colm Imbert provided this information in the House of Representatives on Wednesday.

"The number of contributors in the National Insurance System (NIS) during 2023 was recorded at 491,726, increasing by 8.0 per cent from 455,448 in 2 2022, while the number of beneficiaries increased by 4.1 per cent from 214,490 to 223,281. That is an increase of over 36,000 contributors."

Imbert said, "Contribution income collected for the 2023 financial year amounted to $4.807 billion, increasing by 6.1 per cent from the $4.530 billion earned in 2022."

The NIB, he continued, identified July 1, 2022-June 30, 2023 as a period of restoration for it as the last of the mandatory covid19 public health restrictions were removed.

"There was a strengthening of business activity in the non-energy sector, with increased economic activity in transportation and storage, wholesale and retail.

"This translated into a rebound in the number of contributors, both employees and employers during the financial year."

The number of new employers registering with the NIB increased by 2.5 per cent to 1,638 people.

The active employer population, Imbert said, increased by 2.7 per cent to 19,140 people.

With respect to employee registration, 24,667 applications for processing in the financial year were determined.

"Of these, 79 per cent were new insured persons added to the database in 2023, a 36 per cent increase compared to 2022."

On benefit administration, Imbert said as at June 30, 223,281 beneficiaries received a total of $6.16 billion, "which represented an increase in expenditure of 7.6 per cent over the previous period."

On contribution income, the total amount collected at June 30 was $4.807 billion. Imbert said this figure was $407 million above the budgeted estimate of $4.4 billion.

In the area of investment, he said the the market value of the investment portfolio of the NIB was $28 billion.

This, he added, reflected a "$1.1 billion or 3.7 per cent decrease over the fund size in 2022.

"The decline in the portfolio’s market value," he explained, "was mainly attributable to approximately $290 million in unrealised losses as well as the withdrawal of $1.5 billion to finance the NISdeficit during the financial year."

The NIB’s investment holdings, he said, recorded a net unrealised investment loss over the period of $290 million resulting from unrealised losses in equity investments, mutual funds and fixed income respectively.

"Conversely, total realised investment income amounted to $933.0 million, with its key drivers being interest income from local bonds of $386.7 million, dividend income from local equities totalling $370 million, and foreign equity holdings, $93 million."

Imbert said the NIB continued its thrust towards digitisating its contribution records and an additional 3,000 square feet of warehouse space had been acquired to facilitate data clean-up and digitisation.