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1. CERTIFICATION OF FINANCIAL POSITION
• I have conducted actuarial reviews of Professional Provident Society Insurance Company Limited (PPS Insurance) and
Professional Provident Society Insurance Company (Namibia) Limited (PPS Namibia) (‘the insurance interests’) in
accordance with, and this Statutory Actuary’s report has been produced in accordance with, applicable Actuarial Society of
South Africa Standards of Actuarial Practice and Actuarial Practice Notes, and;
• These principles require reasonable provision for the liability in respect of future benefit payments to policyholders, generally
based on the assumption that current conditions will continue. Provision is therefore not made for all possible contingencies;
• I have accepted that the Financial Statements comply with the requirements of the Companies Act;
• The assets in each life company exceeded the liabilities plus capital requirements at the valuation date;
• The South African company met the asset spreading requirements of the Long Term Insurance Act at the valuation date; and
• In my opinion, as at 31 December 2017, the insurance interests were financially sound on the statutory bases and are
expected to remain so for the foreseeable future where financially sound includes meeting the asset spreading requirements
as prescribed by the Long Term Insurance Act for the South African company.
GT Waugh
Statutory Actuary
28 March 2018
The statutory basis balance sheet for each life company is shown below:
2017
2016
PPS Insurance
Paragraph
R'000
R'000
Net assets
2
31 664 763
28 458 935
Insurance liabilities
3
31 287 190
28 090 818
Apportionment and Special Benefit Accounts
24 848 188
22 516 223
Risk benefit reserves
3 756 577
3 546 970
Investment benefits
2 682 425
2 027 625
Excess of assets over liabilities
377 573
368 117
Capital adequacy requirement
4
143 528
139 891
Ratio of excess assets to Capital Adequacy Requirement
2.6
2.6
2017
2016
PPS Namibia
Paragraph
N$'000
N$'000
Net assets
2
1 242 407
998 640
Insurance liabilities
3
1 236 407
992 640
Apportionment and Special Benefit Accounts
909 386
780 513
Risk benefit reserves
327 021
212 127
Excess of assets over liabilities
6 000
6 000
Capital adequacy requirement
4
4 000
4 000
Ratio of excess assets to Capital Adequacy Requirement
1.5
1.5
REPORT OF THE INDEPENDENT ACTUARY
for the year ended
31 December 2017
75