Dear reader,
As I am writing this note at the start of 2026, we look back on 2025 with gratitude, another very successful year for PPS and hence for our members as well. The year that was saw a massive rise in global uncertainty, which was a shock for many. In view of that, one might have reasonably expected 2025 to be a bad year for the rand, international and local markets. But it was not. Investment markets delivered stellar performances, which will boost Profit-Share allocations to our members, to be announced in April. It again showed how difficult it is to make short-term financial market predictions. Yet again, we will have to temper future expectations, reminding our members that it will not always be so good (but it is a nice problem to have!).
Indications are that these investment returns will be boosted by underwriting (claims) profits. Now, in a non-mutual insurance company (owned by shareholders), the claims line is a bad (red) line in the income statement. It is money taken away from shareholders. In a business, such as PPS that operates under the ethos of mutuality, this is not the case – it is value returned to our members. Paying valid claims will always remain our first priority, and if this is a big number, we often celebrate the impact we have made in many lives. However, there will then obviously be less profit to allocate to our members’ PPS Profit-Share Accounts™*.
In an ideal world, claims remain low and profits remain high – a scenario that strengthens an organisation that operates on the ethos of mutuality, because strong profits enable greater shared value for members. The question is how life claims can remain low in the real world.
My article in this edition of The Professional explores this through the theme of perspective. The focus is on building systems that support people long before challenges surface. Prevention requires looking ahead, recognising risks early and shaping conditions that influence outcomes over many years. A claims event addresses an immediate need, while prevention pays attention to what develops quietly beneath the surface. These preventative structures are often unnoticed, yet they are among the most effective ways to ensure that a crisis never arrives.
The question is whether it is possible to build ecosystems and platforms that help members to remain far from the edge, leading to fewer claims over time. In the previous edition of The Professional, I mentioned that PPS is working on an ambitious long-term project that aims to support members in achieving greater growth, career success and living the lives they want to live. A significant dimension of this platform will focus on health and well-being.
It is an audacious undertaking and development is progressing well. The platform is expected to become available to members during the second half of 2026.
Preparation for rollout will begin around mid-year, with increased visibility in the media and more information shared with members through regular interactions with personal financial advisers.
I hope that this edition brings perspective and inspiration as we look toward a year shaped by possibility and shared purpose.
Best wishes,
Izak Smit
PPS Group Chief Executive