PPS Namibia says it delivered a satisfying performance in 2023, 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 on year by 9% from N$213,3 million to N$233,3 million.
The company said its members in Namibia also benefitted from the good 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. In 2023, the business expanded its network of independent advisers, especially targeting younger professionals in rural and remote locations,” the company said.
The company has also increased its engagement with professional associations, corporate entities and state-owned enterprises. It intensified member-facing services, focusing on underwriting, claims and retentions in particular.
New life business in South Africa experienced a setback in 2023 with a 12% decline compared to the previous year. The annual premium income of new life insurance business written in South Africa and Namibia in 2023 was R262,9 million, down 12% on the R297,3 million written in the previous period.
Around 74% of new business in South Africa in 2023 was written by independent advisers, who remain essential and valued business partners. The other 26% of new business was written by its own team of PPS advisers.
“Given the new business and lapse experience, gross life premium revenue in South Africa reached R6 billion in 2023, up 8.7% on 2022. Total gross life claims came in at R3,72 billion for 2023, from R3,25 billion in 2022. It was still around 5% higher than our longer-term actuarial expectation, but this difference has reduced significantly from the COVID-19 years,” the company said.
PPS said it is optimistic about its prospects in 2024, although the company anticipate that economic growth will remain constrained. The company expect post-pandemic interest in life and risk solutions to remain steady, if not to increase.
“Further, while emigration continues to have an impact on the graduate market, this is likely to be offset by the group’s focus on new markets and territories, where uptake of our solutions is likely to be good. We will also be launching a new onboarding and underwriting experience, which will significantly improve the sales experience with PPS,” it said.
