2020 INTEGRATED REPORT

In keeping with our values, PPS Life Insurance was quick to respond to the impact of COVID-19 with situation-specific solutions designed to assist our members in their time of need. We developed claims protocols specific to the pandemic that went beyond the normal scope of our Sickness and Permanent Incapacity product. RISKS, CHALLENGES AND OPPORTUNITIES The most important challenge for the business was obviously dealing with the impact of the pandemic, but the recessionary economic environment remains a big factor. Also, while emigration slowed this year as a result of lockdown restrictions, the potential emigration of professionals still remains a risk for PPS. On the other hand, the risk of attrition was actually mitigated to some extent by the pandemic, as professionals became more aware than ever of the need to protect themselves and their families against unforeseen shocks. Also, somewhat unexpectedly, this awareness has supported the uptake of our Risk products. PPS’s wholly-owned advisory practice called FS4P (Financial Solutions for Professionals), established in 2018, continued its impressive growth in 2020. The business had 30 independent financial advisers by the end of 2020, serving 9 512 clients. Income growth in this business unit was an impressive 75%. PPS S 3 is a significant added value too. This unit is made up of a team of professionals whose sole purpose is to offer their expertise to PPS members and to the financial advisers who serve PPS members. INNOVATION The introduction of the PPS Profit-Share Cross- Holdings Booster was one of the most significant innovations in 2020. Other innovations included digitising our forms, making it possible for members and potential members to apply for PPS products and make claims online. Member service hours were extended to allow members greater flexibility, and a chat functionality was introduced on our website to assist members with routine queries. The Critical Illness Cover for professionals underwent a significant enhancement that was launched to members in January 2021. This extends coverage for critical illness to early-stage diagnoses, offering the possibility of much better treatment outcomes. The limit for potential payouts for cancer and cardiovascular illness were increased, new disease categories added, and Child Critical Illness benefits enhanced. LOOKING AHEAD The business is recovering from, and adapting to, the impact of the pandemic and we are positive about our prospects for 2021, although we are fully aware that the pandemic is still going to be with us in 2021. As a business with a long-term orientation, our balance sheet is strong enough to endure shocks like these. We will continue to focus on adding new members, cross-solutioning existing members, and providing strong support for our financial-adviser network. Strategies are in place to deal with the post-pandemic landscape and with the shift to a hybrid way of working that includes remote working. A major focus going forward will continue to be on the innovation of processes, designed to improve members’ engagement experience. GROUP PERFORMANCE AT A GLANCE | 53