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Mutuality, meaning and the myth of invincibility

PPS’s latest results challenge conventional insurance thinking, highlighting how mutuality reshapes value, purpose and client outcomes. Beyond strong performance, the discussion raises deeper questions about profit, claims and the often-overlooked risk of incapacity in younger clients.
Written by
Tony van Niekerk
Published on
April 23, 2026
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Every set of results tells a story. Some are about growth, others about resilience, and many, if we’re honest, are carefully constructed narratives designed to impress.

In this reflection on the recent results from Professional Provident Society (PPS) I tried to provide a few, slightly unconventional, thoughts on insurance results. Not because the numbers aren’t strong, they are, but because they force us to confront a deeper question: What is the purpose of profit in insurance?

Yes, PPS delivered another record year, allocating R6.88 billion to members. Yes, investment markets played their part, as Group CEO Izak Smit openly admits. But strip away the headlines, and what remains is something far more interesting, and far more relevant to the industry right now.

Who benefits when things go right? - In a listed insurer, the answer is simple: Shareholders. In a mutual, the answer is different: Members.

That distinction is not just structural, it’s philosophical. At PPS, profits don’t disappear into dividend payments. They accumulate. They are invested. They grow over time in each member’s Profit-Share Account. And eventually, they are paid out, often at retirement, sometimes earlier, forming a tangible layer of wealth that sits alongside traditional benefits. Over a decade, that has amounted to more than R35 billion returned to members.  

But here’s the uncomfortable truth for the rest of the market: Mutuality is not just a nice story. It is a fundamentally different value proposition. And one that, in the right conditions, is very difficult to compete with.

Claims are the industry’s most misunderstood signal - There’s another story in the PPS results that deserves far more attention than it typically receives, the claims story. Too often, claims are treated as a negative. A line item to be managed. A cost to be contained. That mindset may make sense in a shareholder model. It makes far less sense in a mutual.

“For us, it’s still value that we return to our members, just in another form,” Izak says.  

That single statement should challenge how we talk about insurance. In 2025, PPS paid R6.67 billion in claims. That is not leakage. That is delivery. And within that, one number stands out, not because it is surprising, but because it is so often ignored.

Permanent incapacity claims reached around R1 billion. Let that sink in.

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The real role of insurance is not just to protect assets, but to protect futures.

Tony van Niekerk
Editor, COVER

The myth of invincibility - If there is one risk the industry continues to undersell, particularly to younger clients, it is incapacity. Death is understood. It is final, visible, undeniable. Disability and incapacity are different. They sit in the uncomfortable middle space, less dramatic, but often more financially devastating.

As Izak points out, many of these claims involve individuals in their 20s and 30s.  People at the very start of their careers. People who believe, quite reasonably, that nothing serious is going to happen to them. They are wrong. Not in a theoretical sense, in a lived, claims-paid, financially life-altering sense.

When a young professional loses the ability to earn an income, the impact is not measured in months or years. It is measured in decades. It is the loss of future earnings, future savings, future security. And yet, income protection and incapacity cover remain some of the hardest conversations to have.

This is where the value of advice stops being a slogan and becomes a responsibility. Because left to their own devices, most people will insure what they can see, the car, the house, the contents, and ignore what matters most: their ability to generate income. A good adviser flips that script.

glu and the democratisation of mutuality - Against this backdrop, the emergence of glu is worth paying attention to. Not because it is another new entrant in a crowded market, but because of what it represents. glu is not just an attempt, but a clear strategy, to take mutuality, historically reserved for a defined professional segment, and extend it into a broader market. And crucially, it is already delivering. In its first year, glu declared R1.78 million in ProfitBack™ allocations to 503 members. Some received over R10,000. One received R135,000.

For a business barely out of the starting blocks, that matters. Not just financially, but symbolically. It demonstrates that mutuality is not theoretical. It works. And when it works, it changes the relationship between insurer and insured. You are no longer just a policyholder. You are a participant.

Restraint in a world chasing growth - Another theme that emerges, both from PPS and glu, is discipline. In a market under pressure, where growth is increasingly hard-won, the instinct is often to push harder, price sharper, expand faster.

PPS has largely resisted that. The focus remains on building sustainable risk pools, maintaining underwriting discipline, and ensuring that growth translates into long-term value, not short-term volume. Some might see it t as not the most exciting strategy. It is, however, one of the most effective over time.

Where this leaves the industry - There are two takeaways from the PPS results that the broader market should not ignore. The first is structural: Mutuality works. When aligned correctly, it creates a powerful long-term value proposition that resonates deeply with members.

The second is more uncomfortable: We are still not having the right conversations with clients, particularly younger ones. The R1 billion in incapacity claims is not just a statistic. It is a warning. A reminder that risk does not wait for age. That financial vulnerability often arrives earlier than expected. And that the real role of insurance, and advice, is not just to protect assets, but to protect futures. In that sense, the PPS results are not just a reflection of performance.

They are a reflection of purpose. And perhaps, a quiet challenge to the rest of the industry to rethink both.

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RE:Cover your client’s ability to earn an income.

With the PPS Sickness and Permanent Incapacity benefit, you can offer them cover that’s straightforward from the start. No loss of income required. No reductions when other income continues. Plus, they’ll qualify for a PPS Profit-Share allocation. Help them recover with the PPS Sickness and Permanent Incapacity benefit.

Members holding qualifying life-risk products share in the profit and the loss of PPS through the notional PPS Profit-Share AccountTM and past performance is not necessarily indicative of future performance. PPS is a licensed life insurer, controlling company and authorised FSP. Ts & Cs apply.

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