2020 INTEGRATED REPORT

This resulted in new business being on par with that of 2019, and even showing marginal growth, from R48 million new annual premium income for life insurance business in 2019, to R50 million in 2020. PPS ASE was, in fact, the only internal distribution agency in the South African insurance industry that managed to grow during 2020, which is a notable achievement. The value of new business improved to a historical high of 8.2%. Advisory Services engagement survey scores had the most significant improvement in the Group, from 63% in 2019 to 73%. The continued focus on being an advice-led business and on providing holistic financial planning has improved both the level of advisor knowledge and the member experience. The S 3 channel managed to achieve 112% of its value-to-Group target, of which 45% of value was generated from the external distribution channel. Fiduciary Services managed to stay flat on last year with 1 002 new signed Wills against a budget of 1 300 new signed Wills. The API and Investment targets were exceeded, and the team managed to maintain the quality of the book through the average value and the average age of Testator. The challenges the business and our clients experienced in 2020 – and continue to experience – are being managed through the collective skills, experience, commitment and service excellence of our people. The business has, for instance, been through an extensive optimisation process, which has included the integration and enrichment of some roles. It also rolled out new fit-for-purpose back and middle office processes. We are in the process of upgrading and enhancing our robo-advice tool, PPS Horizon, which has been rated by technology specialists as one of the best robo-advice tools in the country. It is designed to handle routine questions, and members always have the option of switching through to a human financial adviser during call centre operating hours. Finally, we are able to draw on the resources and services of the S 3 unit, which provides specialist- specific information and financial advice. RISKS, CHALLENGES AND OPPORTUNITIES In line with our ethos of mutuality and our values- driven culture, one of the most significant challenges of the period was to provide support and assistance for our members who were affected by the pandemic in different ways. An ongoing challenge remains to recruit quality new financial advisers, fit for the professional market segment, and to develop and train both new and existing financial advisers to match the changing profile of our members. Guided by our pandemic management strategy and PPS’s renewed focus on key strategic objectives, we are confident that we have both the tools and the commitment to meet this challenge. PROSPECTS In 2021, the economic environment is likely to remain lack-lustre, which will inevitably be a challenge to the business. However, based on performance in the final quarter of 2020, prospects are positive and we expect to meet or even exceed our business targets for the year. We will continue the process of expanding our presence and entrenching our footprint in all of the major cities in South Africa, while simultaneously extending our reach into key outlying regions. We further intend to stimulate growth by continuing to deepen current stakeholder relationships with professional associations, academic institutions and key partner organisations. The PPS Wealth Advisory channel was officially launched across the country in February 2020. The key objectives of establishing the Wealth Advisory channel was to:  Provide high-net-worth professionals with tailored financial advice and solutions for all their wealth protection, wealth creation and wealth acceleration needs;  Increase new member growth by capturing a greater share of the professional market and establish mutually beneficial partnerships; and  Increase assets under management through an investment/wealth targeted and focussed approach. The Wealth Advisory channel achieved its annual premium income and local gross flow targets. Opportunity creation strategies remained muted due to the ongoing pandemic. PPS ADVISORY SERVICES AND ENABLEMENT (CONTINUED) 56 | PPS INTEGRATED REPORT 2020