ICMIF member Professional Provident Society (PPS) is a South African mutual financial services company focused solely on products that are specifically tailored to meet the needs of graduate professionals. PPS has expanded its Profit-Share benefits to personal insurance products offered by PPS Short-term Insurance to members with qualifying products. This benefit, which is unique to the Short-Term insurance industry, comes into effect for the financial year 1 January 2020 to December 2020.
“When PPS Short-Term Insurance became a wholly-owned subsidiary of PPS in 2018, we set ourselves a strategic objective to grow the group’s Profit-Share benefits to include the short-term insurance products offered by the group, making this a distinguishing factor within the Short-Term Insurance industry,” says Werner Bosman, CEO, Short-Term Insurance at PPS.
A further advantage is that the insured claims experience of a particular member will not have an impact on the Profit-Share allocated to them.
Unlocking the benefits of Profit-Share
PPS is the only diversified financial services company in South Africa operating under the ethos of mutuality. Members with qualifying products participate exclusively in the operating profits and investment returns of the PPS Group.
Funds accumulated in a members’ Profit-Share Account vest atretirement (tax-free*), on death (tax-free*) or on policy cancellation (after forfeitures). An additional benefit is that from the age of 55, members have the option to select the investment strategy of their PPS Profit-Share Account retirement plan.
“At PPS, we embrace mutuality and believe that Success is Better shared. Up until 2019, 6,804 individual PPS members accumulated more than R1 million in their Profit-Share Accounts. While in 2019, R4.2 billion in total profits were allocated to members’ Profit-Share Accounts. This is achieved by applying for Profit-Share linked PPS Provider products across our business lines,” says Bosman.
“This means that from April/May 2021, following the distribution of PPS Group’s operating profits for the full financial year to 31 December 2020, PPS members can look forward to accumulating annual Profit-Share allocations with reference to their Short-Term Insurance products,” adds Bosman.