CHAMWE KAIRA
The strategy of PPS Insurance Namibia continues to be the introduction of new products, services and solutions.
“That is why our Namibian members benefitted from the introduction of a retirement annuity product in 2024,” said Izak Smit, PPS Group CEO.
The company is the provider of financial solutions exclusively for graduate professionals.
“We are pleased with our performance, which was supported by our robust strategy. Our priority as a company operating under the ethos of mutuality is to support our members by paying all valid claims. Thereafter, we share our success with our members by allocating operational and investment returns to members holding qualifying life-risk products’ notional PPS Profit-Share Accounts,” said Smit.
In 2024, the company recorded an operating profit but also achieved a remarkable return on its investments, said Johan van der Westhuizen, Chief Executive Officer of PPS Namibia.
Gross insurance premium revenue increased year on year by 9.7% from N$233.3 million in 2023 to N$255.8 million in 2024.
Benefits and valid claims returned to PPS Namibia members amounted to N$216.6 million. New members increased year over year by 14%, contributing N$16.4 million in annual premium income.
The total net (of reinsurance) claims increased from N$83.3 million in 2023 to N$98.4 million in 2024.
PPS Namibia experienced a 40.8% increase in life net claims at N$14.8 million, while health net claims of N$83.6 million were 14.8% higher compared to 2023.
PPS Namibia recorded an increase of 26% in operating profit to N$62.3 million compared to N$49.3 million in 2023.
Strong market performance contributed N$201.6 million in investment returns allocated to members’ notional PPS Profit-Share Accounts.
Van der Westhuizen said the impact of a good profit year is evidenced by the value of the PPS Profit-Share Accounts of some of the long-standing members.
“Having at least N$1 million in one’s PPS Profit-Share Account by retirement at age 60 could provide a solid foundation. We are proud to have welcomed 96 new members to the ‘PPS Profit-Share millionaires club’ in Namibia. This brings the total number of profit-share millionaires created to 600,” Van der Westhuizen added.
He said the strength of PPS’s unique mutual model ensures that premiums paid by members who hold qualifying products are ultimately returned to them through claims paid or investment growth allocations to their PPS Profit-Share Accounts after business running costs.
Globally, almost a third of insurance premiums go to mutual organisations, he disclosed.
