South African ICMIF member Professional Provident Society (PPS) has enhanced its unique Profit-Share benefit by adding a Cross-Holdings Profit-Share Booster. This will see members with qualifying products who hold up to three PPS subsidiary and affiliate products getting extra booster benefits on their existing Profit-Share earnings from PPS’s annual operating profits and investment returns.
“At PPS, we believe in innovating for the benefit of our members especially in growing their Profit-Share Accounts through intelligent financial solutions. The Profit Share Cross-Holdings booster is our way of rewarding members for holding a bouquet of Profit-Share qualifying products with us. Ultimately, the Profit-Share Cross-Holding Booster will add to the compounded growth of their Profit-Share earnings over time,” says Motshabi Nomvethe, Head of Technical Marketing at PPS.
“As a country, we have begun to emerge from the health and financial devastation resulting from the COVID-19 pandemic. Continuing to help our members build their financial security is top-of-mind for PPS and the rationale for re-evaluating our Profit-Share model,” adds Nomvethe.
PPS is the only diversified financial services company in South Africa operating under the ethos of mutuality. This means that members with qualifying products participate exclusively in the profits of the PPS Group through the allocation of all profits to their unique Profit-Share Accounts, which accumulates with investment returns.
For 2019, PPS allocated a total of R4.2 billion (USD 285 million) of PPS’s operating profits and investment returns members’ Profit-Share Accounts.
The Profit-Share Cross-Holdings Booster concept
The Cross-Holdings Booster is tiered according to the number of products a member holds. For a member with a PPS Life Risk Product, the booster benefit increases in percentage based on the number of extra subsidiary and affiliate products the member has. The booster includes up to:
- 15% more in Profit-Share for a life risk product plus one other subsidiary product
- 22.5% more in Profit-Share for a life risk product plus two other subsidiary and affiliate products; and
- 27.5% more in Profit-Share for a life risk product plus three other subsidiary and affiliate products.
Unlocking the benefits of Profit-Share
“At PPS, we believe that Success is Better shared. Up until 2019, 6,804 PPS members had accumulated more than R1 million in their Profit-Share Accounts. This is achieved by applying for Profit-Share linked PPS Provider products across our business lines, says Nomvethe.
“PPS remains well positioned for the post COVID-19 new normal and the Group is confident in its long-term focus to deliver exceptional value to our members. The Cross-Holding Profit-Share Booster allocations will make a significant contribution to the financial legacies of our membership,” concludes Nomvethe.