Standout financial year for PPS: record R5.3bn in profit-share allocated to members

The Professional Provident Society (PPS) has released its financial results for the year ending December 31 2024, reporting a record return of value to its members.

The Group allocated R5.33bn in profit-share to members in SA with qualifying life-risk products’ notional PPS Profit-Share Accounts*. This marks the largest allocation in its 84-year history. This is an increase from R4.35bn in 2023 and reflects PPS’s continued commitment to its mutual model, ensuring that the value generated is directly returned to its members.

The R5.33bn allocation consists of an all-time high operating profit allocation of R1.74bn and an investment return allocation of R3.59bn.

PPS provides tailored financial solutions exclusively for graduate professionals in SA, Namibia and Australia. With no external shareholders, everything it does is with its members in mind. Guided by mutuality, PPS strives to create long-term financial security and holistic wellness for its members. This is evident in the allocation of operational and investment returns to the notional PPS Profit-Share Accounts^* of members with qualifying life-risk products.

“Last year’s performance demonstrates our commitment to mutuality and shared success. We support our members in building a strong financial foundation for today and retirement while also fostering individual financial resilience and contributing to broader economic growth,” says Izak Smit, PPS Group CEO.

In 2024, in addition to the profit-share allocated, the PPS Group returned R5.95bn in total benefits to its members in SA and Namibia, slightly down from R6.12bn in 2023. This included R1.96bn in profit-share payouts to members who exited their life-risk cover phase, primarily due to retirement. 

Permanent incapacity benefit payments saw a 14.7% increase, reaching R973.6m, and life cover benefits paid decreased by 16.5% to R1.15bn.

Additionally, PPS provided vital support to its members by paying R972.7m in sickness claims, R536.2m in critical illness benefits and R161.3m in lump-sum disability benefits. 

SA in focus

In SA, the Group’s life insurance gross earned premium revenue totalled R6.44bn, up 7.3% from last year. It also kept its lapse rate impressively low at just under 4.42% despite graduate professional members experiencing financial pressures from the constrained economy.

New life-risk annual premium income reached R257.5m, growing by 5% compared to R245.4m in 2023. A significant contribution was made by independent financial advisers, who generated three-quarters of the PPS Group’s new business, while the remaining portion originates from its internal channels. 

Members with PPS life-risk products in SA increased from 127,490 at the end of 2023 to 129,366 at the end of 2024, while those with a product across the PPS Group increased from 155,554 at the end of 2023 to 159,252 at the end of 2024.

PPS Investments

PPS Investments again delivered exceptionally strong growth in a year of global political uncertainty with elections being held in countries worldwide.

Its total assets under management remained resilient ending at R96.52bn in 2024, up 14.9% compared to R84bn in 2023. Gross inflows were R9.67bn. This is testament to the business’s robustness and diligence embedded in its investment processes.

PPS’s short-term insurance business

PPS’s short-term insurance business, which includes personal and business insurance product lines, exceeded expectations.

Despite a competitive industry, PPS Short-Term Insurance’s gross written premiums were R421.5m, up 23% from last year. The business recorded a profit before tax amounting to R31.3m in 2024. This comprises PPS Short-Term Insurance’s Personal and Commercial Lines business’s first-ever profit of R6.8m and PPS Health Professions Indemnity profit of R24.5m. Now in its sixth year, the health professions indemnity business recorded strong gross written premiums of R146.1m.

PPS Healthcare Administrators

PPS Healthcare Administrators had a successful year as well. Trends revealed increases in elective procedure claims (a post-pandemic effect) and rising claims for non-communicable diseases and mental health treatment, particularly among younger individuals. Home-based care claims also grew, reflecting efforts to reduce hospital stays. 

PPS Insurance Namibia

PPS Insurance Namibia delivered an equally impressive performance in 2024.

Operating profit for PPS Insurance Namibia increased to N$62.3m from N$49.3m in 2023. The total net (of reinsurance) claims increased from N$83.3m to N$98.4m. Gross insurance premium revenue increased year-on-year by 9.7% from N$233.3m to N$255.8m.

Members in Namibia also benefitted from the good investment market returns in 2024. Investment returns distributed to members’ notional PPS Profit-Share Accounts increased from N$176.9m in 2023 to N$201.6m in 2024.

Members with PPS Insurance Namibia life-risk products increased from 5,444 at the end of 2023 to 5,718 at the end of 2024.

PPS Mutual

PPS Mutual, an affiliate company established in Australia nine years ago, continued to perform well.

It now has more than 13,000 graduate professional members and has attained highly favourable annual in-force premiums of more than A$90m.

It also earned the title of Best Retail Life Insurer from Australian ratings firm Adviser Ratings, for the second year in a row, securing a place in the top two in all categories.

Looking ahead

“Our strategy is to extend mutuality to previously untapped market segments and territories. PPS Mutual, our associate company in Australia, continues to perform exceptionally well and we are preparing to enter the New Zealand market in the second half of 2025 subject to regulatory approval,” says Smit.

“Locally, in January 2025, we launched glu Mutual (glu), an entirely new division designed to extend mutuality-driven benefits to a broader audience across SA, notably individuals between the ages of 25 and 55, ideally with a degree, diploma or a connection to an existing PPS member. Qualifying members of glu will share in the business’s annual returns.

“As we look ahead, we are excited about the opportunities to further enhance the protection and wealth creation our members enjoy through mutuality. Our unique model ensures that success is shared — allowing members to not only safeguard their financial wellbeing but also to benefit from the long-term value generated.”

Access PPS's full 2024 financial report here.

This article was sponsored by PPS. 

^{*Members holding qualifying life-risk products share in the profit and the loss of PPS through the notional PPS Profit-Share Account and past performance is not necessarily indicative of future performance. The PPS Profit-Share Account remains notional until it vests upon retirement from age 60 or upon death.} 

^{PPS is a licensed insurer conducting life insurance business, a licensed controlling company and an authorised FSP.}