2019 Integrated Report

92 | PPS INTEGRATED REPORT 2019 HOLDING ENTITY The holding entity for the PPS Group is The Professional Provident Society Holdings Trust, registration number IT 312/2011 (‘PPS Holdings Trust’), which controls all the entities in the PPS Group. PRINCIPAL ACTIVITIES PPS Holdings Trust is a trust registered by the Master of the High Court in terms of the Trust Property Control Act of 1988. PPS Holdings Trust's sole investment is 100% of the shares of Professional Provident Society Insurance Company Limited (‘PPS Insurance’). The beneficiaries of PPS Holdings Trust are the PPS Group companies. Membership of PPS Holdings Trust is acquired through participation in PPS Group products. The Ordinary Members of PPS Holdings Trust control the Group through the election of trustees. Ordinary Members participate in all the profits of the PPS Group through their participation in their policyholder PPS Profit-Share Accounts. PPS Insurance Company Limited (‘PPS Insurance’) is a wholly-owned subsidiary of PPS Holdings Trust and is a long-term insurance company registered in South Africa in terms of the Insurance Act, which offers a broad range of insurance products, including sickness and incapacity benefits, life and disability benefits, critical illness benefits and business assurance policies. PPS Insurance also issues linked living annuities and endowment policies to PPS members. Professional Provident Society Investments (Pty) Limited (‘PPS Investments’) and its subsidiaries are wholly-owned subsidiaries of PPS Insurance which provide, inter alia , savings and investment products primarily to PPS members. Professional Provident Society Insurance Company (Namibia) Limited (‘PPS Namibia’) is a wholly-owned subsidiary of PPS Insurance and provides insurance products exclusively to the Namibian market. A reinsurance agreement with PPS Insurance is in place for PPS Namibia. In terms of this reinsurance arrangement, PPS Namibia partially reinsures its obligations to the Namibian policyholders with PPS Insurance. This arrangement was put in place in order to protect the security and benefit expectations of the Namibian policyholders. Without this reinsurance arrangement, the Namibian subsidiary with over 5 000 Namibian policyholders would be exposed to higher volatility from fluctuations in claims experience. Professional Provident Society Healthcare Administrators (Pty) Limited (‘PPS Healthcare Administrators’) is awholly-owned subsidiary of PPS Insurance, which administers Profmed andothermedical schemes. PPSHealthcare Administrators’ objective is to provide professional service and to support the sustainability of the schemes by applying scheme, benefit and tariff rules properly and managing clinical risk, to enable medical schemes to provide for the health care needs of members when they need it most. The administered schemes have their own independent boards of trustees. Professional Provident Society Short-Term Insurance Company Limited (‘PPS Short-Term Insurance’) is a wholly-owned subsidiary of PPS Insurance and is a fully-fledged short-term insurer, offering Personal Lines, Commercial Lines and through its Healthcare Professionals Indemnity Division, professional indemnity products, to PPS members. PPS Mutual Limited and its operating subsidiary are affiliates of PPS Insurance launched in Sydney, Australia in February 2016. The company’s operating model replicates the PPS Group in South Africa’s mutual model, focusing on the insurance needs of graduate professionals in Australia. The PPS Property Fund Trust (‘PPS Property Trust’) is a trust controlled by PPS Insurance, registered in terms of the Trust Property Control Act of 1988, which invests in certain investment property for the benefit of PPS Insurance. Financial Solutions 4 Professionals (Pty) Limited (FS4P) is a wholly-owned subsidiary of PPS Insurance, established as a brokerage, to provide a vehicle for supporting agents that are not able to sell PPS due to Retail Distribution Review regulation, which came into effect on 1 January 2018, and enables the continuity of members’ insurances. TRUSTEES’ REPORT