PPS Insurance allocates N$205.9 million in profits to members for the 2019 financial year
PPS Insurance Namibia (PPS Namibia) in a recent statement announced that they had a commendable year allocating N$205.9 million in profits to its members for the 2019 financial year after paying benefits and valid claims of N$106.7 million.
The financial services company, exclusively for graduate professionals and embracing the ethos of mutuality, has lived up to its motto that “Success is Better Shared”.
Pleased with the company’s performance in 2019, Johan van der Westhuizen, Chief Executive Officer of PPS Namibia said, “The profit-share allocations to our members topped a cumulative N$665.2 million over six years which shows how value is optimised when success is shared.”
PPS members in Namibia enjoyed a good year as far as claims are concerned, with net claims decreasing marginally. This helped to offset increased expenses related to regulatory developments which required certain functions to be transferred to its local operations, he said.
Van der Westhuizen added that new annual premium income of N$15.9 million was achieved in the year under review, which represents growth of 131% on 2018. Products marketed to graduate professionals by the business include long-term life, sickness, dread disease and disability insurance.
“The company is reporting its 2019 results at a time when the whole world has suddenly changed due to the effects of the COVID-19 pandemic. This will no doubt have an impact on the economy and PPS’s operating profit and investment returns in 2020,” van der Westhuizen noted.
Izak Smit, Group CEO of PPS Insurance South Africa said the roll-out of new product lines by PPS Namibia was an exciting development which led to new business written doubling.
“This is a positive indicator for the business off the back of new product lines and investments in distribution which should see PPS Namibia experience continued growth over the next few years,” he added.
PPS Namibia showed renewed commitment to its Namibian members by improving its offering to members by expanding the product range.
“Following the launch of lump sum death, disability and critical illness benefits, the Namibian business exceeded targets considerably, demonstrating how urgent the need was for extended coverage. As part of this focus on making more products available in Namibia, three new product enhancements will be introduced during 2020,” Smit added.
He also attributed this healthy performance to graduate professionals’ growing appetite for the mutual model, the company’s unique solutions and the ongoing support of intermediaries. “Intermediaries are key business partners across the PPS Group and we will continue to work closely with them in the future.”
“We are delighted with the performance of PPS Namibia for 2019. Not only did we pay benefits to members in their time of need, but we were also able to provide generous profit allocations. These results demonstrate the strength and sustainability of the ethos of mutuality. PPS Namibia thanks all our members, brokers and staff for their valued contribution,” Van der Westhuizen concluded.
