enjoy. And yet, for most of our members, the positive
effect of operating profit was more than adequate to
compensate for the negative market return impact.
This demonstrates the power of our model, where
most members could still enjoy positive additions to
their Profit-Share Accounts after the most brutal year
in the investment markets since the Great Recession
of more than a decade ago.
PPS Investments (PPSI)
PPSI performed well due to new business signings
and tight control over expenditure. At year-end PPSI
had signed 46% more business than the previous year,
which was 10% above an optimistic target, a very good
achievement in a very tough environment.
Revised distribution strategies have transformed PPSI’s
new business drive into an operation that now also
has a wholesale focus. During 2018 PPSI introduced
the first of our new range of PPS Partnership Funds.
PPS Short-Term Insurance (STI)
Our 2018 results came in below budget due to the
unfavourable economy muting new business. We also
experienced a tougher claims environment, but continue
to see evidence that the professional market segment
is a relatively benign risk pool. STI has in recent months
successfully migrated its claims administration to a
new service provider, and developed a mobile app that
will soon be rolled out to our members, strengthening
a highly competitive value proposition. During 2018,
STI became a wholly owned subsidiary in the PPS
Group. Very exciting for our members in the medical
professions is the roll-out of new professional indemnity
solutions, a big need in this space.
PPS Healthcare Administrators (PPSHA)
PPS Healthcare Administrators recorded satisfactory
results, although growth in membership numbers did
not reach target. Nevertheless, PPSHAmet its budgeted
earnings targets and paid out healthy dividends which
we allocate to members.
PPS Advisory and Enablement Services
In response to market and regulatory shifts, PPS merged
its former Life and Investment Advisory businesses into
a consolidated financial advisory division for members
to access the entire suite of PPS products and financial
planning services.
Our Lifestyle Financial Planning team was repositioned
as Specialist Support Services (S
3
), to support our
advisers and members in complex financial planning,
and to coach members on how best to utilise PPS
options. The S
3
team remains impartial, as it does not
implement products or receive related commissions.
Implementation happens through our members’ trusted
advisers.
PPS Life Broker Services (LBS)
Our LBS team delivered an exceptional performance,
reaching its 2018 targets despite the stalled economy
and loss of a traditional business pipeline due to the
advent of the new Retail Distribution Review (RDR)
regulatory environment. Timeous preparation enabled
us to cushion the blow of RDR through solutions such
as assisting our business partners in relocating affected
advisers to independent financial practices, where
relevant. PPS also started its own independent financial
advisory practice in 2018, FS4P (Financial Solutions
for Professionals).
MAKING INNOVATION WORK
FOR PROFESSIONALS
Professionals will inevitably be at the forefront of
changes in their disciplines – with much based on
incoming technology. PPS has positioned itself at the
leading edge of change to remain in step with our
membership base in this fast-evolving reality.
PPS engages with world-leading innovators to share
learnings and participate in digital forums appropriate
for our member needs. In 2018 PPS sponsored the
first ever Singularity University conference in Africa
exclusively for professionals, which made available a
staggering amount of forward thinking and intellectual
property for our members.
In 2018 we also linked up with Plug and Play, a
San Francisco-based innovation platform that connects
the world’s largest corporations with innovators around
the globe. PPS is actively engaging in Plug and Play
programmes.
To be launched in 2019, the PPS PRO-FiT platform is
a game changer for members, enabling them to take
an integrated approach to their financial, wellness
and lifestyle planning. Profit-share planning is a
key feature, with members able to evaluate various
scenarios on their current or potential product portfolio.
PPS PRO-FiT will also help initiate professional growth
by enabling our members to exchange expertise,
referrals, consultations, internships and job offers,
particularly with practitioners in similar fields.
CEO MESSAGE
TO MEMBERS
(continued)
PPS
INTEGRATED REPORT 2018
12