2019 Integrated Report

PPS GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS 2019 R’m 2018 R’m 2017 R’m 2016 R’m 2015 R’m DESCRIPTION OF INDIVIDUAL ITEMS Net insurance premium revenue 4 607 4 163 3 858 3 414 2 986 Premiums received from policyholders net of reinsurance premiums paid to reinsurers. Other income 481 418 437 369 357 Administration fees: Long- and short-term insurance, medical aid and retirement annuity. Short-term insurance commissions. Fees earned for asset management. Investment income and profits on financial assets and investment property 5 345 31 4 611 2 293 2 686 Interest, dividends, and realised and unrealised gains on investment assets. Attributable to unit trust holders (1 735) (155) (967) (477) (279) Third-party unit trust holders' share of relevant income and revaluation gains. Total revenue 8 697 4 458 7 940 5 600 5 750 Gross insurance benefits and claims 3 749 3 167 2 877 2 423 2 177 Gross benefits paid to members. Reinsurance claims recoveries (260) (235) (177) (160) (132) Claims recovered from reinsurers. Increase/(Decrease) in fair value of policyholder liabilities under investment contracts 170 (48) 140 15 69 Investment income, net of expenses, relating to the underlying assets linked to the investment policyholder contracts. Expenses 2 210 1 910 1 596 1 507 1 381 Group operating expenses, commissions paid on new business written, and investment management fees. Finance costs 24 17 17 18 3 Interest cost on borrowings and lease liabilities. Profit before movement in insurance policy liabilities 2 804 (353) 3 487 1 796 2 251 Movement to insurance policy liabilities 2 436 (334) 3 012 1 547 1 821 The amount allocated to members in their capacity as policyholders. Tax 381 (28) 465 226 356 Taxes raised in favour of the South African and Namibian Revenue Services. (Deficit)/Surplus after tax and policy movements (13) 9 10 23 75 Any adjustment required to maintain capital cover and the result of operations of subsidiaries, other than the long-term insurance subsidiary. This includes losses of subsidiaries that are in the start-up phase of their business cycle. for the year ended 31 December 2019 This comprises insurance claims paid to members and Profit-Share pay-outs This amount forms part of the annual allocation to members’ PPS Profit-Share Accounts. A further R1.8bn is allocated from the movement in the Actuarial Reserve ABRIDGED FINANCIAL STATEMENTS | 53