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Message from our CEO, Izak Smit

It is my privilege to report to members that PPS has weathered the extraordinary events of 2020 quite well. We could not have asked for a more challenging backdrop to prove that our mutual model provides us with a solid base to stay true to our purpose: supporting our members and providing financial security in times of great need.

A crisis has the ability to either expose the flaws in a model and a team, or to prove its robustness and to make a team stronger. I count myself fortunate to be part of a team and a model that can look back at 2020 with immense pride. I have commented in previous reports that our staff members at PPS are often humbled by the niche market segment that we serve, which includes some of South Africa and Namibia’s most educated and influential individuals in the various professions. It is a privilege and a huge responsibility. But in 2020, pride was indeed the emotion that surfaced. We are proud to be associated with professionals who were at the forefront of helping the greater community to deal with the challenges.

>> Read the CEO's full message for 2020

Key performance indicators

Key Performance Indicators (KPIs) for each strategic focus area are allocated to specific individuals. Monthly scorecards for each are submitted to the PPS Executive Committee (Exco) for review.

  Unit of

FINANCIAL STABILITY Gross premium income Rand
5.3 5.5     Gross premium income (long-term & short-term insurance) is slightly behind expectations mainly due to the lower takeup rate of the annual benefit increase.
  Investment return % 6.9 6.3     Investment return measured over a five-year rolling period performed ahead of the benchmark.
  Efficiency ratio % 15.5 16.2     Cost control remains an imperative of the Group.
  New annual risk premiums (long-term insurance) Rand
222.6 251.8     New annual risk premiums are 11% down on prior year and perfomed behind target as a result of the economic impact of the COVID-19 lockdown.
  New gross written premiums (short-term insurance) Rand
12.9 28.2     New short-term insurance premiums written are 50% down on the prior year and performed behind target as a result of the economic impact of the Covid-19 lockdown.
  New investment inflows Rand
7.5 7.6     Performance is 23% up on prior year, and in line with target.
MEMBERSHIP Number of new members recruited during the year Individuals 6 876 6 822     New member recruitment performed in line with target in 2020.
Long-term insurance policies lapse rate % 5.1 5.4     Policy lapse rates exceeded target due to enhanced member retention efforts.
Health Claims Rand
1.9 1.4     Health claims are more than expected and include R155.8 million sickness claims related to COVID-19.
Death Claims Rand
1.3 0.7     Death claims are more than expected and include R233.9 million claims certified as COVID-19.
STAFF Employee satisfaction survey results % 92 90     Employee satisfaction scores remain in excess of target.
  Training spend as a percentage of payroll % 5.0 > 4.0     Training spend is ahead of target. Investment in human capital continues to be an important strategic objective of the Group.

* Assets in unit trusts for third parties
  Partly achieved
  Not achieved