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), which controls all the entities in the PPS Group. COVID-19 pandemic COVID-19-related claims have significantly decreased compared to 2021 and 2020 on both the Health and Life side. NonCOVID-19-related sickness claims have increased, one of the reasons being that patients are less reluctant to see a medical practitioner for a diagnosis compared to times when the pandemic was prevalent. We continue to monitor the evolution of COVID-19 and therefore continue to hold an appropriate COVID-19 reserve. 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 whollyowned subsidiaries of PPS Insurance which provide, inter alia, savings and investment products primarily to PPS members. During 2022 the PPS Group commenced with transitioning assets backing the PPS Profit-Share Account to the in-house multi-manager, PPS Multi-Managers, a wholly-owned subsidiary of PPS Investments. This is a multi-year project with R9.1 billion of assets transferred to date. PPS Multi-Managers has managed the assets underlying the Risk Reserves for several years now. 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 was in place for PPS Namibia for 2022. 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. Without this reinsurance arrangement, the Namibian subsidiary with over 5 000 Namibian policyholders would be exposed to higher volatility from fluctuations in claims experience. 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 89 Trustees’ report
RkJQdWJsaXNoZXIy MTY2ODY3Ng==