Message from our CEO, Izak Smit
It is my privilege to report to members that PPS has experienced an exceptional year in 2021 in terms of supporting our members and returning value to them. In our unique mutual model, premiums that members pay to our insurance businesses - with investment growth - are returned to them, either as claims or as allocations to their Profit-Share Accounts when they hold qualifying products. The only flow out of the Group, is of course the management expenses to run the business. From this perspective, 2021 has been a most astonishing year. As is to be expected during a worldwide pandemic, life insurance claims payments have exceeded anything that we have ever witnessed in our 80-year history. The investment markets also experienced a very good year and the investment returns that we can distribute to our members in the form of Special Benefit allocations to their Profit-Share Accounts have exceeded those of any previous year. Collectively, the value that was returned to members through claims in 2021, supporting them in times of need, and the value added to their Profit-Share Accounts due to investment returns on accumulated past profits, is extraordinary.
>> Read the CEO's full message for 2021Key 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.
|
Our key KPI's |
Unit of
measure |
2021 Performance |
2021 Goal |
Commentary |
|
| Financial stability | Gross premium income |
Rand billions |
5.6 | 5.7 | Gross premium income (long-term and short-term insurance) is in line with expectations. |
| Investment return | % | 10.3 | 9.7 | Investment return measured over a fiveyear rolling period performed ahead of the benchmark. | |
| Efficiency ratio | % | 18.2 | 17.4 | Cost control remains an imperative of the Group. Once-off cyber recovery costs negatively impacted the efficiency ratio for 2021. | |
| New annual risk premiums (long-term insurance) |
Rand
millions |
273.7 | 258.0 | New annual risk premiums are 23% up on prior year and performed well ahead of target. | |
| New gross written premiums (short-term insurance) |
Rand
millions |
14.2 | 28.5 | New short-term insurance premiums written are 10% up on prior year and performed behind target as a result of lower new policies written. | |
| New investment inflows |
Rand billions |
7.1 | 7.5 | New investment inflows are behind target due to the economic impact of COVID-19. | |
| Membership | Number of new members recruited during the year | Individuals | 7 024 | 8 450 | New member recruitment performed behind target in 2021 due to the lockdown. |
| Long-term insurance policies lapse rate | % | 5.0 | 5.4 | Policy lapse rates remained within acceptable levels. | |
| Health Claims |
Rand billions |
2.2 | 1.8 | Health claims are significantly more than expected and include R423.6 million sickness claims related to COVID-19. | |
| Death Claims |
Rand billions |
2.0 | 0.9 | Death claims are significantly more than expected and include R974.8 million claims certified as COVID-19. | |
| Staff | Employee satisfaction survey results | % | 73 | 70 | 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 | |
| Achieved | |
| Partly achieved | |
| Not achieved | |
| Target metric not achieved but members benefited from value returned through the payment of additional claims during the pandemic. | |
https://www.pps.co.za/about/reports/overview/2021