PPS Integrated Report 2021 Who we are and what makes us different | 10 Our values At PPS, we believe that what we value internally will drive our behaviour externally and we live by three core values: • We take extreme ownership. Our people are empowered to deliver service excellence to our members and we encourage leadership in all areas of the business. • We are eternally curious. We are not satisfied with the status quo and are driven by the goal of constantly improving the solutions we offer our members. We are committed to innovation, giving staff the opportunity to innovate while recognising and responding to the unique, complex and changing needs of our members. • We do the right thing. We conduct our business with empathy, authenticity and care, but with the highest standards of ethics, fairness, governance and respect for all. The ethos of mutuality Although it is a model that is not commonly used in the South African financial services industry today, the ethos of mutuality is what defines PPS. This takes us back to the original roots of insurance and the true purpose of the insurance industry. PPS is not listed on any stock exchange and has no external shareholders who receive dividends. Members who hold qualifying products benefit directly from our profits through their dedicated Profit-Share Accounts. The ethos of mutuality is at the heart of PPS and is in our DNA. It permeates every aspect of our business and is fundamental to our success. That is why our members – through elections – are represented on our board and contribute greatly to good governance within the PPS Group. Their input – in conjunction with that of board members representing various professional associations – ensure members’ voices are always heard. We invest profits and investment returns on behalf of our members, taking a long-term view of wealth creation. Irrespective of the claims our members may submit a share of the profit accumulates in their individual Profit-Share Accounts and vests on retirement or on death. This is a unique feature in the South African insurance sector and there is no benefit to rival it. Once our members retire from their professional careers at or after the age of 60, the profits they have accumulated in their Profit-Share Accounts throughout their membership become available to them through a Vested PPS Profit-Share Account. Although this is available at that time for members to withdraw in full without any reductions, many choose to keep these assets invested as part of their post-retirement savings to generate further returns and to supplement their retirement incomes. The benefits of mutuality are clear. There can be no tension between the interest of shareholders and members because all members are treated as shareholders and receive a Profit-Share where they hold qualifying products. Members who have products from PPS subsidiaries and affiliates in addition to qualifying life insurance products, qualify for additional Profit-Share allocations. The PPS Profit-Share Cross-Holdings Booster is awarded over and above the existing allocation and is based on holding qualifying products across PPS subsidiaries and affiliates. The more diverse a member’s portfolio is spread across PPS subsidiaries and affiliates, the more their Profit-Share allocation will be. Many longstanding members have at times, in fact, received more in Profit-Share allocations in a particular year – over and above product benefit payouts – than they have paid in premiums in that year. In a sense, we have a counterintuitive situation in which members are paid to enjoy product benefits. A business that in effect pays its members to enjoy its products? That is what the mutual model at PPS delivers for many of our long-standing members. Professional focus In addition to the ethos of mutuality, PPS is defined by its professional focus. To begin with, we are very discerning about granting membership. Only graduate professionals with a qualifying tertiary qualification qualify to become members. This qualifying criterion spans across industries and professions, making PPS a leader in the professional segment. Then, not only are our products, services and solutions specifically tailored to meet our members’ needs, financial advisers must go through a strict selection and accreditation process to ensure that they are suitably qualified to market and sell our products. PPS-accredited financial advisers have industry-specific knowledge that enables them to offer informed advice on the specific issues and challenges our members face. Last, but not least, PPS’s membership profile significantly reduces our business risk, ultimately enhancing returns to members.
RkJQdWJsaXNoZXIy NzI4MzY4