2020 INTEGRATED REPORT

CORPORATE GOVERNANCE REPORT GOVERNANCE STRUCTURE * These are statutory committees with a direct reporting line to the PPS Insurance Board. ** This is a statutory committee, required in terms of the Trust Deed of PPS Holdings Trust, with a direct reporting line to the PPS Holdings Trust Board. # These functions also have direct reporting lines to the appropriate board committees. ## External audit has a direct reporting line to the boards of PPS Holdings Trust, PPS Insurance and its subsidiaries, and reports primarily to PPS members. $ Subsidiaries PPS Short-Term Insurance and PPS Investments each have their own combined Risk and Audit Committees, over which the Group Risk and Group Audit Committees have oversight. GOVERNANCE The holding entity of the PPS Group is the Professional Provident Society Holdings Trust (PPS Holdings Trust). Its primary operating subsidiary is Professional Provident Society Insurance Company Limited (PPS Insurance). The key operating subsidiaries of PPS Insurance are Professional Provident Society Short-Term Insurance Company Limited (PPS Short-Term Insurance), Professional Provident Society Investments Proprietary Limited (PPS Investments) and Professional Provident Society Healthcare Administrators Proprietary Limited (PPS Healthcare Administrators). Good corporate governance is an integral part of the PPS Group’s operations and the PPS Group is fully committed to the principles of King IV and the Prudential Standards. In terms of the Prudential Standards, Risk Management and Internal Controls for Insurers (GOI 3), PPS Insurance is required to adopt, implement, and document an effective governance framework that provides for the prudent management and oversight of its insurance business and adequately protects the interests of its policyholders. PPS MEMBERS PPS Holdings Trust Board of Trustees PPS Holdings Trust Audit Committee** Subsidiary Company Boards $ PPS Insurance Company Board Nominations Committee Remuneration Committee Executive Management Committee Risk Management Function* Social and Ethics Committee* Compliance Function* Risk Committee Actuarial Function # Technology Steering Committee Actuarial Committee Internal Audit # Group Audit Committee* External Audit ## 78 | PPS INTEGRATED REPORT 2020

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