PPS (South Africa) has announced strong financial performance for 2017, with an allocation of ZAR 3.7 billion in profits to its members. This is in addition to the R2.9 billion in total benefits paid. PPS is a member of the International Cooperative and Mutual Insurance Federation (ICMIF) and is focused exclusively on graduate professionals.
“Success is better, shared,” says CEO of PPS, Izak Smit (pictured). “PPS members enjoy more than just professional cover. In 2017, our members were able to enjoy their share of ZAR 3.7 billion allocated to their unique Profit-Share Accounts, further reinforcing our passion for mutuality.”
The company says its ability to perform in a tough economic environment was achieved through leveraging technology for cost-efficiencies, tight expense management and a significant rise in investment profits.
There are currently 4 400 PPS members with over a million Rand in their PPS Profit-Share Accounts. Profits are allocated to members’ PPS Profit-Share Account annually. These profits accumulate over members’ working lifetime and at retirement, says PPS, they can be transferred to PPS Investments for further investment growth.
Smit says he is pleased with the company’s robust growth in 2017, which saw gross premium revenue exceeding ZAR 4 billion for the first time – a 12% increase year on year. The Group’s total assets, (excluding unit trusts for third parties), increased to ZAR 35.3 billion. PPS Investments increased assets under management to ZAR 28.6 billion with new investment flows rising 14%. This is partly attributed to members reinvesting their money with the investment business at retirement. Smit adds, “PPS has evolved to an end-to-end financial partner for our members.”
Smit attributes this healthy performance to graduate professionals’ growing appetite for PPS’s unique solutions and the ongoing support the company receives from intermediaries.
“We have seen a strong surge in support from intermediaries and were delighted to win the Long-Term Insurer of the year: Risk Product category, at the prestigious Financial Intermediary Association (FIA) awards last year. Intermediaries are key business partners and we will continue to work closely with them in the future.”
A focused strategy and strong growth have underpinned the company’s evolution into a fully-fledged financial services company, says PPS, with the company offering a wide range of solutions tailored exclusively around the needs of graduate professionals. The PPS offering now spans long and short term Insurance, investments, financial planning, fiduciary services and healthcare administration.
Looking ahead to 2018, the company says it will continue to focus on growth across the full range of financial solutions. PPS plans also include the roll out of digital tools and initiatives which will further enhance the service experience for members and intermediaries.
Photo shows: Izak Smit (left) with Shaun Tarbuck, Chief Executive, ICMIF at the ICMIF office in the UK