CHAMWE KAIRA
In 2023, PPS Namibia said it delivered a satisfying performance, surpassing most competitors despite navigating a challenging, low-growth economy.
PPS Namibia recorded an operating profit of N$49.3 million. The total net (of reinsurance) claims increased from N$73.6 million to N$83.3 million.
Gross insurance premium revenue increased year over year by 9%, from N$213 million to N$233 million.
The company said its members in Namibia also benefited from the favourable investment market returns in 2023.
Investment returns distributed to members’ PPS Profit-Share Accounts have increased from N$4.7 million in 2022 to N$176.9 million in 2023.
“We continue to adhere to the same multi-manager strategy in Namibia that our members benefit from in South Africa,” the company said.
The company said in 2023, PPS Health Professionals Indemnity was able to extend the solution to PPS members in Namibia.
The members in Namibia can now benefit from both the cover provided by the solution and the high level of personal service on offer.
“Our strategy in Namibia continues to be the introduction of new products, services and solutions into the market shortly after they have been launched in South Africa. Namibian members can, therefore, look forward to many new innovations in 2024,” Izak Smit, group chief executive officer of PPS, said.
According to PPS, the solution has seen impressive uptake since its launch, and the number of insured professionals increased by 21% during the reporting period.
“This led to an increase of R112.7 million in gross written premiums in 2023, up 26% compared to 2022. The exponential growth of the active policy book since its inception can be attributed to the growth in new business and low lapses.
The company said load shedding continued to impact its members, and claims for equipment affected by power outages remain high.
“Load shedding also has an impact on economic growth, which, in turn, places financial strain on our members,” he said.
Smit said there is little doubt that the economic climate in South Africa will remain constrained.
Growth continues to be sluggish and is only expected to improve to 1% in 2024, while inflation is expected to remain high, dropping marginally from an average of 5.9% in 2023 to an expected average of 5% in 2024.
“Exacerbated by the ongoing power supply crisis, this pattern is unlikely to change in the short term. The global economy, in turn, continues to be characterised by a high level of uncertainty, with geopolitical conflicts affecting many financial indicators,” Smit said.
