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Once again, I’m reporting back on a challenging year, although these days, tough trading is regarded as ‘business as usual’ and matching up to the previous year’s results is becoming ‘the new normal’.
On the operating side, PPS managed to outperform this new normal.
Difficult conditions not only reflect our South African realities of political and economic volatility, but also the societal and technological changes that are sweeping across the globe. A 2019 Edelman Trust Barometer survey reveals that only one out of five people believe ‘the system’ still works for them, with nearly half the global sample stating that the current system has actually failed them. We see this in the concerning rise of populism in the world around us.>> Read the CEO's full message for 2018
The performance of our management and staff is measured on a balanced scorecard basis with an equal weighting for both financial and non-financial measures.
The KPI's are categorised under mutuality, financial stability, service and staff, which in turn tie back to our key strategic priorities for the Group.
|FINANCIAL STABILITY||Gross premium income||Rand billions||4.5||4.6||Gross premium income (long term and short term) is slightly below expectations.|
|Total assets*||Rand billions||34.9||39.0||Total asset growth expectation is measured over a three-year rolling period. Total assets is below the goal due to negative investment returns from markets in 2018.|
|Efficiency ratio||%||14.7||15.2||Cost control remains an imperative of the Group.|
|New annual premiums||Rand millions||588.2||593.7||New long-term risk premiums are in line with prior year, but below the internal target. The economic environment in South Africa has proven to be challenging for the consumer in 2018.|
|New investment inflows||Rand billions||5.9||5.3||Performance is significantly up on prior year, and ahead of internal target.|
|MEMBERSHIP||Number of new members recruited during the year||Individuals||6 931||7 961||New member recruitment performed below target in 2018.|
|SERVICE||Claims processed within Service Level Agreement||%||100.0||97.5||PPS aims to provide members with world-class service. Claims processing targets were exceeded during the year.|
|Customer satisfaction survey results||Rating||97.8||> 80||Members are satisfied with our service. The rating is based on two important levers of service: professionalism and first time resolution.|
|STAFF||Training spend as a percentage of payroll||%||6.0||> 5.2||Training spend is ahead of target.|
|* Excluding assets in unit trusts for third parties.|