TRUSTEES’ REPORT Holding entity The holding entity for the PPS Group is The Professional Provident Society Holdings Trust, registration number IT 312/2011 (PPS Holdings Trust or the Trust), which controls all the entities in the PPS Group. COVID-19 pandemic COVID-19-related claims observed have decreased compared to 2020, 2021 and 2022. While this was largely expected following the increased levels of immunity, it is also because of a general reduction in testing from prior years. Our view on COVID-19 has moved from a pandemic to an endemic nature, resulting in us strengthening our morbidity and mortality assumptions informed by in-depth research and discussions with our reinsurance partners. We will continue to monitor the evolution of COVID-19. Going concern and solvency The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The solvency position of the PPS Group remains resilient. 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 PPS Group through the election of trustees. All the profits of the PPS Group are allocated to the Ordinary Members of PPS Holdings Trust through their participation in their policyholder PPS Profit-Share Accounts. 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 Investments (Pty) Limited (PPS Investments) and its subsidiaries are wholly-owned subsidiaries of PPS Insurance which provide, inter alia, savings and investment products primarily to PPS members. During 2023 PPS Insurance transitioned the remaining assets backing the PPS Profit-Share Account to the in-house multimanager, PPS Multi-Managers, a wholly-owned subsidiary of PPS Investments. PPS Multi-Managers has managed the assets underlying the Risk Reserves since 2010. Professional Provident Society Insurance Company (Namibia) Limited (PPS Namibia) is a wholly-owned subsidiary of PPS Insurance providing insurance products exclusively to the Namibian market. PPS Namibia currently has over 5 400 Namibian policyholders. Prior to 2023 a reinsurance agreement between PPS Insurance and PPS Namibia was in place to protect the security and benefit expectations of the Namibian policyholders from fluctuations in claims experience. This reinsurance agreement was terminated in 2023 following a review of the reinsurance structures of PPS Namibia where it was decided that this agreement with PPS Insurance is no longer required. Professional Provident Society Healthcare Administrators (Pty) Limited (PPS Healthcare Administrators) is a whollyowned 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. The administered medical schemes have their own independent boards of trustees. 90 Trustees’ report
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