CEO’S MESSAGE TO MEMBERS As in the previous year, the challenge of retaining members remained significant across all the schemes the business administers, with Profmed, in particular, being affected by emigration, graduate unemployment and the movement of professionals from private practice into permanent employment. During the year, the business entered into a new servicelevel agreement with Profmed, enabling the scheme to provide even greater value for graduate professionals. For example, it now guarantees to resolve member queries within three hours. This comes after introducing benefits such as PPS Wallet, PPS Gap and dental risk management during the previous period. Uniquely, PPS members with qualifying life-risk products who are also Profmed members benefit from industryleading administration services at cost, as most of the profit generated from these services is returned to them through their PPS Profit-Share Account™. The business retained the Level 2 B-BBEE accreditation it achieved last year. PPS Namibia In 2023, PPS Namibia delivered a satisfying performance, surpassing most competitors despite navigating a challenging, low-growth economy. In 2023, PPS Namibia recorded an operating profit of N$49.3 million. The total net (of reinsurance) claims increased from N$73.6 million to N$83.3 million. Gross insurance premium revenue increased year on year by 9% from N$213.3 million to N$233.3 million. Expenses were well-managed. Our members in Namibia also benefitted from the good investment market returns in 2023. Investment returns distributed to members’ PPS Profit-Share Accounts™ have increased from N$4.7 million in 2022 to N$176.9 million in 2023. We continue to adhere to the same multi-manager strategy in Namibia that our members benefit from in South Africa. In 2023, the business expanded its network of independent advisers, especially targeting younger professionals in rural and remote locations. It also increased its engagement with professional associations, corporate entities and state-owned enterprises. It intensified member-facing services, focusing on underwriting, claims and retentions in particular. Our strategy in Namibia continues to be the introduction of new products, services and solutions into the market shortly after they have been launched in South Africa. Namibian members can, therefore, look forward to many new innovations in 2024. PPS Mutual (Australia) PPS Mutual, an associate company established in Australia eight years ago, operates very successfully. Not only does it provide the benefits of PPS’s mutual model to its members in Australia, but it also contributes to the Profit-Share allocations of South African members through the payment of fees and royalties. Operationally, it falls under the auspices of the newly formed New Markets and Territories division at PPS, tasked with spearheading PPS’s expansion into previously untapped markets in South Africa and into new geographies. Over the past year, the business demonstrated remarkable resilience under difficult trading conditions and achieved a number of commendable milestones. It now has more than 11 000 members and has attained a highly favourable annual in-force premium of more than A$70 million. It also earned the title of Best Retail Life Insurer from Adviser Ratings, an independent market comparator, securing a place in the top three in all categories. This is particularly noteworthy given that it competes against major global insurers and that back-office administration is located in South Africa to ensure cost efficiencies. PPS’s successful entry into the Australian market has proven the value of the ethos of mutuality in markets outside of South Africa. Of note is that, contrary to initial expectations, only a small number of members are South African expatriates, as the mutual model has proven to be highly attractive to Australian nationals as well. As a result, PPS Mutual (Australia) is now positioned among the leading providers of financial services products to professionals in the country. New markets and territories Based on the success of PPS Mutual, PPS is currently preparing to enter the New Zealand market and is on track to open an office in that country in 2024. In South Africa, we are exploring the possibility of extending into previously untapped market segments as part of our growth strategy. 26 Leadership commentary
RkJQdWJsaXNoZXIy MTY2ODY3Ng==