NIS records $16.5m profit following loss of EC$5.5m in 2024

The National Insurance Services, the social security agency in St. Vincent and the Grenadines, recorded profits of EC$16.5 million during the first half of 2025, compared to a loss of EC$5.5 million year on year. 

Prime Minister Ralph Gonsalves said that the NIS had informed him that the first half of 2025, “reflects a period of exceptional progress for the National Insurance Services. 

“The institution has not only achieved a strong financial turnaround, but has also advanced its operational resilience and deepened public trust,” he said, quoting from a letter he said he had received from the NIS.

Gonsalves said on NBC Radio that the NIS had informed him that contribution collections, investment returns and arrears recovery all surpassed the prior year performance, leading to a net profit of EC$16.5 million compared to a net loss of EC$5.5 million in the period 2024.

He said the contribution income rose from EC$38 million during the first half of 2025 to EC$55 million, a 45% increase during the comparable period of 2025.

“This was driven by the increase in the number of persons who are employed and paying contributions, employer compliance, an expansion in insurable wages and the adjustment, of course, of the contribution rate from 12% to 13% between employee and employee,” the prime minister said.

He said there was 51% improvement in the collection of arrears, with EC$2.7 million collected during the first six months of 2025.

Investment income rose to EC$16.2 million, up from approximately EC$11 million last year, a “very impressive” 49% rise.

“That relates to the interest rates in dividend receipts and some unrealised capital gains on the international equity investments that the NIS has,” the prime minister said.

He said that the investment portfolio expanded from $441 million to $479.7 million, yielding 7.5% as distinct from 4.8%

“Six per cent or thereabout should keep us good,” the prime minister said. 

He, however, said that the benefits expenses increased also, rising from EC$47.8 million to EC$49 million. 

“In fact, what you have, contribution income can now pay the benefit expenses, so you could put away a little bit more in the kitty,” the prime minister said, adding that the NIS was also containing the administrative expenses.

Gonsalves said the number of active insured people at the NIS rose from 44,766 last year to the first half of 2024 to 46,318 year on year, an increase of 3%.

“These people didn’t come from Mars. These people are not making contributions because they are own account (self-employed). These are people who are employed.”

He said the evidence that employment has increased is that in 2001, when his Unity Labour Party came to office, about 30,000 people were registered with the NIS.

“It means that between then and now, there are 16,000 persons more,” Gonsalves said, adding that “the best proxy for increasing jobs under the ULP is these numbers.

“And the population is basically flat, between 2001 and now…” he said.

“And the Internet crazies who don’t live here, some of them live here, but they so stuffed with malice, but those overseas who want to be turned overnight from internet crazies to your excellencies, fighting for status, a lot of them have failed at ditching and fetching and want to take up politics and diplomacy on their way to the poor house, they still tell you that unemployment here is 40%, youth unemployment is 50%. 

“All them kind of rubbish, they tell you.”

Gonsalves said there were more jobs on the way, as he and the CEO of Sandal Resorts International were trying to find a convenient date to sign an agreement for the establishment of a Beaches Resort.

All the terms have been agreed, he said, adding that the 375-room hotel would be constructed at a cost of $375 million 

“You need 1,500 people to run that. And just down at Peter’s Hope, going further north west, waiting on the lawyers for Marriott to finally — there are some issues with that particular agreement. That’s 300 rooms at Peter’s Hope requiring 600 workers to run it,” Gonsalves said.