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CHAIRMAN’S
STATEMENT
Writing this 2017 chairman’s report was a genuine pleasure,
with PPS once again reporting positive returns and membership
growth. In the broader context, I sense an atmosphere of
renewed optimism about South Africa’s political stability and
economic prospects.
Our country’s economic indicators have turned positive
after years of stagnant growth and a technical recession that
impacted on all sectors of our society, including the community
of graduate professionals that make up the PPS membership
base. Actual forecasts still vary, with the South Africa Reserve
Bank (SARB) conservatively estimating a 2018 growth rate of
0.9%, whereas Goldman Sachs, the global investment bank,
is forecasting national growth at 2.8%. Goldman Sachs views
South Africa as an emerging economy highlight for 2018,
as it rates our local credit and currency markets as being
undervalued relative to other emerging markets.
A significant strengthening of the Rand would, to a certain
extent, mitigate against the negative effects of credit ratings
downgrades and may likely reduce the costs of borrowing for
both the private and public sectors.
A renewed commitment to good governance in the public and
private sectors bodes well for the future of South Africa.
Collectively, these positive developments augur well for
our economic growth and the concomitant wealth creation
required for achieving that fair and just society envisaged
by South Africa's constitution - a vision no doubt shared by
our members.
Despite South Africa’s challenges in 2017, PPS recorded a 12%
increase in revenue, with our gross premium income exceeding
R4bn for the first time. Because of this strong performance, we
were able to transfer R3.7 billion to the member profit sharing
account, while paying out R2.9 billion in claims and benefits.
During the year in review tight cost controls, investment growth
and a low member lapse rate, ensured that PPS remained
well-financed and highly sustainable.
In our previous integrated report for the 2016 financial year, we
mentioned innovative projects that PPS had embarked upon,
including robo-marketing, opening an Australian business
and launching a short-term insurance business. In addition
the short-term insurance is growing steadily as part of the
end-to-end bouquet of risk and investment products that PPS
can make available to members.
PPS
INTEGRATED REPORT
2017
8