2020 INTEGRATED REPORT

WHO WE ARE AND WHAT MAKES US DIFFERENT (CONTINUED) The more qualifying products a member holds across PPS subsidiaries and affiliates, the more their Profit-Share allocation will be. Many long-standing members have, in fact, received more in Profit-Share allocations to their Profit-Share Accounts – over and above product benefit payouts – than they have paid in premiums. They gain access to these accumulated funds in their Profit-Share Accounts, subject to the policy rules, at retirement from the age of 60 onwards. A business that pays its long-standing members to enjoy its products? That is what the mutual model at PPS delivers for many of our long-standing members. PROFESSIONAL FOCUS In addition to the ethos of mutuality, PPS is defined by its professional focus. For a start, we are very discerning about granting membership and only professionals with an honours-level qualification or higher qualify to become members. Then, not only are our products, services and solutions specifically tailored to meet our members’ needs, financial advisers have to go through a strict selection and accreditation process to ensure that they are suitably qualified to market and sell our products. PPS-accredited financial advisers also have industry-specific knowledge that enables them to offer informed advice on the specific issues and challenges our members face. Last, but not least, PPS’s membership profile significantly reduces our business risk, ultimately enhancing returns to members. There is a subtler element at play too. Professionals generally display certain behavioural traits that are common to the professional ethos of their chosen professions. They typically embrace certain personal risk management principles, an unwillingness to unnecessarily terminate insurance cover and an urgency to return to their professions after a period of illness. This leads to lower lapses and claims, which supports profitability. It ultimately yields more profits to share between members. Our members value the common pool of resources and wish to preserve its value. 8 | PPS INTEGRATED REPORT 2020