It is my pleasure to report to our members that, despite the tough trading environment in which we operate and which continued to pose challenges to financial services businesses throughout South Africa in 2019, PPS managed to outperform most of the goals we had set for ourselves at the beginning of the year.
This result was due to the hard work of our staff and the committed implementation of our strategic agenda, as well as the enduring strength of our mutual model. We are often humbled by the niche market we serve, a market segment that includes some of South Africa’s and Namibia’s most educated and influential individuals in government, the academic world, business and, of course, the various professions. It is both a privilege and a mammoth responsibility.>> Read the CEO's full message for 2019
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 measure||2019
|FINANCIAL STABILITY||Gross premium income||Rand billions||5,0||5,0||Gross premium income (long-term & shortterm) is in line with expectations.|
|Investment return||%||6,5||6,6||Investment return measured over a three-year rolling period performed more or less in line with the benchmark.|
|Efficiency ratio||%||16,0||16,1||Cost control remains an imperative of the Group.|
|New annual risk premiums (long-term insurance)||Rand millions||250,9||241,4||New annual risk premiums are 10% up on prior year and performed ahead of targets.|
|New gross written premium (short-term insurance)||Rand millions||38,6||49,2||New gross written premiums are 34% up on prior year, but performed below targets.|
|New investment inflows||Rand billions||6,1||5,9||Performance is up on prior year, and ahead of internal target.|
|MEMBERSHIP||Number of new members recruited during the year||Individuals||7 327||8 379||New member recruitment performed below target in 2019.|
|SERVICE||Member survey results: Call centre||%||94,8||90,0||PPS aims to provide members with world-class service. Member survey results exceeded targets during the year.|
|STAFF||Training spend as a percentage of payroll||%||5,4||> 4,5||Training spend is ahead of target. Investment in human capital continues to be an important strategic objective of the Group.|
|Achieved||Partly achieved||Not achieved|