37. Management of risks (continued) 37.3 South Africa Namibia South Africa Namibia 518 6 459* 6* 246 4 144* 4* * Unaudited numbers During 2023, the PPS Insurance Board supported a proposal to retain the required capital cover of 2.1 times which still provides adequate capital cover based on the analysis performed. This decision has resulted in R59 million allocated from (2022: R49 million allocated to) total comprehensive income/(loss). Short-Term Insurance R'm Capital held Regulatory capital 2022 2023 The Group has a level of SCR cover at 1.60 times (2022: 1.60 times). The Group has complied with all externally and internally imposed capital requirements throughout the period. PPS Collective Investment Scheme funds managed by PPS Multi-Managers (Pty) Ltd The Board’s policy is to maintain an adequate capital base to protect policyholders’ and creditors’ interests and satisfy regulators whilst still creating value for shareholders. The level of capital required by the Group is determined by the Prudential Standards under the Insurance Act 18 of 2017. The minimum capital requirements are maintained at all times during the year. The Board considers the capital of the Group to be the total of all accumulated funds held. The unit trust fund vehicle and related procedures for offering investments is mature within South Africa and is well-regulated. The unit trust funds which are defined as portfolios are grouped under entities named Professional Provident Society Collective Investment Scheme and Prescient Global Funds ICAV (PPS Global Equity Fund). Described below is the unit trust subsidiary manager and asset manager and its respective mandate and objective. The Group invests in various registered unit trusts in order to match obligations provided in policyholder contracts. Each fund has its own legal constitution and operates within a defined fund mandate delegated to the appointed fund manager. Market and credit risks assumed within the assets held are controlled by various protection mechanisms within the mandate and in law. For example, the Collective Investment Schemes Control Act, No. 45 of 2002 as amended, in South Africa prescribes maximum limits for the concentration of risk exposures. The Collective Investment Scheme’s oversight board appoints administrators who are responsible to ensure that the fund’s mandate and any internal and legislated control procedures are adhered to. In the event of a breach they are obligated to immediately bring it to the attention of the fund’s trustees, Board and management for remedial action. Financial risk management (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2023 227 Notes to the Consolidated Financial Statements
RkJQdWJsaXNoZXIy MTY2ODY3Ng==