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Success is better, shared - PPS allocates R3.7 billion in profits to members in 2017

18 April 2018Izak Smit, PPS
Izak Smit, CEO of PPS.

Izak Smit, CEO of PPS.

Built on the ethos of mutuality, PPS, a financial services company focused exclusively on graduate professionals, showed a strong performance in the 2017 financial year, allocating R3.7 billion in profits to its members. This is in addition to the R2.9 billion in total benefits paid.

“Success is better, shared,” says CEO of PPS, Izak Smit. “PPS members enjoy more than just professional cover. In 2017, our members were able to enjoy their share of R3.7 billion allocated to their unique Profit-Share Accounts, further reinforcing our passion for mutuality.”

The company’s 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 5 300 PPS members who have 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, can be transferred to PPS Investments for further investment growth.

Smit is pleased with the company’s robust growth in 2017, which saw gross premium revenue exceeding R4 billion for the first time - a 12% increase year on year. The Group’s total assets, (excluding unit trusts for third parties), increased to R35.3 billion. PPS Investments increased assets under management to R28.6 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, 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 will continue to focus on growth across the full range of financial solutions. PPS also plans to roll out digital tools and initiatives which will further enhance the service experience for members and intermediaries.

Smit concludes, “We are delighted by the performance of PPS during 2017. We were able to pay substantial claim benefits, as well as provide significant profit allocations. These results continue to demonstrate the benefits of belonging to a financial services group operating under the ethos of mutuality.”

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