PPS assets grow almost 10% despite headwinds and failure to obtain Competition Commission exemption
Members of the Professional Provident Society (PPS) have received N$83.1 million in profit share allocations for the 2016 financial year, provided they own the qualifying PPS products, the Chief Executive of PPS Namibia, Adri Vermeulen said on Thursday.
PPS Profit Share accounts vest from age 60 onwards.
PPS, the largest Namibian insurance company still operating under a mutual model, now controls assets exceeding N$1 billion. The company’s assets grew by 9.6% in the 2016 financial year. As a mutual company, profits are remitted to members profit share accounts.
Earlier this year, PPS Namibia as a subsidiary of Sanlam, failed to obtain exemption from the Competition Commission. The company does not expect this development to have an impact on the efficiency of their mutual insurance business model.
Vermeulen stressed that members have benefited hugely from their ability to share in the profits of the company in recent years. “The total cumulative profit-share allocated to PPS Insurance Namibia members over the last ten years, has exceeded N$752.6 million, making it by far the largest and most successful mutual company in Namibia.”
Izak Smit, the Chief Executive of PPS in South Africa, stated that 2016 was a very volatile year, not only for South Africa but the world. “However, despite unexpected events and a tough economic environment, PPS stood strong in times of uncertainty and reaped rewards for its members” he said.
“PPS members enjoy a unique value proposition, as members share in all the PPS Group’s profits. These profits build up over their working lives and at retirement** they will receive these accumulated funds as a lump-sum pay out,” said Vermeulen.
According to PPS, an increased interest in the mutuality model is taking place globally, with the total market share of mutual and cooperatives insurers increasing from 24.1% in 2007 to 26.7% in 2015. These statistics come from the International Cooperative and Mutual Insurance Federation.
“We are extremely pleased with the performance of PPS Insurance Namibia during 2016, especially in light of the challenging economic conditions. These results demonstrate the strength of members belonging to a mutual financial services company” said Vermeulen.
PPS has more than 350,000 members across the southern African countries where they operate.