Windhoek-PPS Insurance Namibia, the financial services company focused exclusively on graduate professionals, has confirmed that total profit share allocations to members with qualifying products for the 2016 financial year amounted to N$83.1 million.
The company, which is the largest company in Namibia operating under a mutual model – meaning that all PPS Insurance Namibia’s profits are allocated to PPS Insurance Namibia members on an annual basis by way of allocations to their PPS Profit-Share Accounts – confirmed a 9.6 percent increase in total assets to just over N$1 billion.
Adri Vermeulen, chief executive of PPS Insurance Namibia, says members have benefited hugely from their ability to share in the profits of the company in recent years.
“The total cumulative profit-share allocated to PPS Insurance Namibia members over the last ten years has exceeded N$752.6 million, making it by far the largest and most successful mutual company in Namibia.”
Izak Smit, CEO of PPS, says that 2016 was a very volatile year, not only for the country but the world. “Locally we experienced fluctuations in the value of the rand, while globally we saw the United Kingdom vote to leave the European Union and witnessed a dramatic and unexpected result in the US elections. However, despite these unexpected events and a tough economic environment, PPS stood strong in times of uncertainty and reaped rewards for its members.”
“PPS members enjoy a unique value proposition, as members share in all the PPS Group’s profits. These profits build up over their working lives and at retirement they will receive these accumulated funds as a lump-sum pay out,” says Vermeulen.
An increased interest in the mutuality model is taking place globally, with the total market share of mutual and cooperatives insurers increasing from 24.1 percent in 2007 to 26.7 percent in 2015, according to the latest statistics from the International Cooperative and Mutual Insurance Federation (ICMIF).
“We are extremely pleased with the performance of PPS Insurance Namibia during 2016, especially in light of the challenging economic conditions. These results demonstrate the strength of members belonging to a mutual financial services company. As the PPS Insurance Namibia business continues to grow, our members benefit continually by having financial peace of mind and by receiving all of the profits of the company via the allocations to their PPS Profit-Share Account,” concludes Vermeulen.
The PPS Group boasts in excess of 350 000 members who have access to a comprehensive suite of financial and healthcare products specifically tailored to meet the needs of graduate professionals. PPS Insurance Namibia is the largest Namibian company of its kind that still embraces an ethos of mutuality, which means that it exists solely for the benefit of its members. Thus, members who are policyholders can exclusively share in the profits of PPS Insurance Namibia.