PPS Namibia allocates N$248 million in profit to members
PPS Insurance Namibia (PPS Namibia), a provider of financial solutions exclusively for graduate professionals, demonstrated resilience in a challenging financial year amid a weak economic environment and high Covid-19 mortality. Despite these uncertainties and significant claims paid, PPS Namibia was still able to allocate N$248 million in profits to its members after paying benefits and valid claims of N$214.1 million.This was achieved as a result of an exceptional increase of 52% in new membership and investment market returns in a volatile market, contributing favourably to Profit-Share Accounts of members.
Pleased with the company’s resilience in an unparalleled 2021, PPS Namibia chief executive Johan van der Westhuizen, says: “PPS’s ethos of mutuality ensures that our priority is to pay all valid claims so that we assist our members through difficult times such as that experienced in 2021. We achieved our purpose and protected our members.”
What differentiated 2021 from the previous financial year was the 48% surge in net claims at N$81 million (2020: N$55million). Covid-19 illness and death claims over 700 contributed N$36 million (including four Covid-19-related death claims).
PPS Namibia focuses exclusively on graduate professionals, creating products and designing services that cater specifically to their needs. This is achieved through the ethos of mutuality, where PPS Namibia members benefit significantly as company profits are allocated to them through allocations to their PPS Profit-Share Accounts. The PPS Profit-Share Account also accumulates investment returns and vests upon retirement or is payable upon a member’s death.
Van der Westhuizen added that PPS Namibia stood firm in a defining year where the country was one of the most hard-hit in the world with new infections per capita per million people and was able to achieve a new annual premium income of N$19.9 million, which represents a growth of 18% on 2020. New membership also grew by 52% compared to 2020, exceeding its annual new member growth target.
First of its kind
PPS Namibia made significant strides to expand the business through a combination of cross-selling and product initiatives and strengthening its distribution footprint at universities, the far northern region, the coastal region and far outlying areas in the far northeast.
PPS Namibia launched an enhanced Critical Illness product to provide immunotherapy, a first in the insurance industry, assisting members to recover faster and get back to their lives and professions.
This provides for a lump-sum benefit payment for a wide range of illnesses so that they can plan and make decisions on their medical and financial needs in the event of immunotherapy cancer treatments. This allows for multiple claims on a wide range of illnesses. In addition, a functional disability product with an occupational disability offering was added to support members after retirement when cover is most needed.
Izak Smit, Group CEO of PPS Insurance in South Africa, says that the professional way that PPS Namibia supported members during the challenging year no doubt contributed to new member growth. “Namibian members can look forward to launching fiduciary services in 2022. Our commitment to protect and enhance the lives of our members remains unwavering.”
Van der Westhuizen concludes: “Looking ahead, our resolve as a team is strong to continue protecting graduate professionals in Namibia in a mutual way. We thank all our members, brokers and staff for their continued support and valued contribution.”