PPS Namibia announces allocation of profits
The company, which is the largest company in Namibia operating under a mutual model – meaning a business that is owned by its members and therefore returns profits to its members rather than shareholders – confirmed an increase of 20.4% in operating profits to N$42.4 million.
Adri Vermeulen, Chief Executive of PPS Namibia, says members have benefited hugely from their ability to share in the profits of the company in recent years. “Over the last ten years, PPS Namibia has allocated more than N$579.0 million to its members, making it by far the largest and most successful mutual company in Namibia.”
On average, in 2013, PPS Namibia members got 42% of their premiums back in their PPS Profit-Share Accounts, highlights Vermeulen. ”This is the vehicle that accumulates PPS members’ profit allocations. Our members have a unique value proposition by belonging to PPS, as they receive all the profits of the company. Upon retirement, they qualify for a lump sum pay-out of all the accumulated profits.”
Globally, the mutual industry has performed well over the past few years, says Vermeulen. According to latest statistics published by the International Cooperative and Mutual Insurance Federation (ICMIF) Chief Executive Insights report, the share of the global insurance market held by mutuals has grown by 26% since 2007, compared to just 11% for the listed insurance sector. “This shows increased consumer confidence in our model of governance, globally.” PPS Namibia announced that its investment return for distribution to members rose 38.0% year-on-year to N$106.4 million, up from N$77.1 million previously and achieved a record level of assets in 2013.
In addition to the profit allocation, Vermeulen says total gross benefits paid to members, including life, dread disease and disability claims amounted to N$35.6 million in 2013.
“We are extremely pleased with the performance of PPS Namibia during the last year. These results demonstrate the strength of members belonging to a mutual financial services company. As the PPS Namibia business continues to grow, our members benefit by receiving all of the profits of the company.”