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PPS
INTEGRATED REPORT 2018
88
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 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 by effectively
including Namibian policyholders in a risk pool of over 124 000 policyholders. Without this reinsurance arrangement,
the Namibian subsidiary with over 4 900 Namibian policyholders would be exposed to higher volatility from
participating in a significantly smaller risk pool.
Professional Provident Society Healthcare Administrators (Pty) Limited
(‘PPS Healthcare Administrators’) is
a wholly-owned subsidiary of PPS Insurance, which administers Profmed and other medical schemes. PPS Healthcare
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.
Professional Provident Society Short-Term Insurance Company Limited
(‘PPS Short-Term Insurance’) is a
wholly-owned subsidiary of PPS Insurance, following the acquisition of Santam Limited’s former 49% interest
during December 2018. PPS Short-Term Insurance is a fully-fledged short-term insurer, offering Personal Lines,
Commercial Lines and Professional Indemnity products 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 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.
TRUSTEES’
REPORT