PPS, the financial services company focused exclusively on graduate professionals, has announced on 28 March that total profit share allocations to members* for the 2013 financial year rose 42% on the previous year to over R4 billion.
The company, which is the largest company in South Africa operating under a mutual model (a business that is owned by its members and therefore returns profits to its members rather than shareholders) confirmed an increase in excess of 17% in PPS Group operating profits to over R1,0 billion.
Over the last five and 10 years, PPS has allocated more than R13,5 billion and R19,6 billion, respectively to its members*.
On average, in 2013, members got 40% of their premiums back in their PPS Profit-Share Accounts, the vehicle that accumulates PPS members’ profit allocations. Upon retirement, members qualify for a lump sum pay-out of all the accumulated profits.
Globally, the mutual industry has performed well over the past few years. According to latest statistics published by the International Cooperative and Mutual Insurance Federation (ICMIF) “Chief Executive InSights” report, the share of the global insurance market held by mutuals has grown by 26% since 2007, compared to just 11% for the listed insurance sector.
The PPS Group announced its investment return for distribution to members rose 53% year-on-year to over R3 billion, up from R2 billion previously and achieved a record level of assets in 2013.
In addition to the profit allocation, total gross benefits paid to members, including life, dread disease and disability claims amounted to R1,5 billion in 2013.
* PPS members with qualifying products