FROM THE
CEO ’ S DESK
Dear reader , if you are a member of PPS , you are part of the biggest financial services provider ( FSP ) on the African continent that operates under the ethos of mutuality . Of course , there are many larger FSPs in Africa , but they do not have mutuality at their core . This is strange because most of the world ’ s largest and most successful insurers started as mutuals . Mutuality is almost synonymous with the ethos of insurance and is close to the concept of ubuntu ( I am because we are ), an idea well-entrenched in many African cultures .
Last year , the International Cooperative and Mutual Insurance Federation ( ICMIF ), the international society of mutual insurers , celebrated its centenary in Rome , Italy . It was founded in 1922 , also in Rome . A few of us from the PPS management team attended the conference , where we could rub shoulders and connect with leaders from mutual insurers worldwide . The mutual model is still much more common in other areas of the world , and almost a third of all insurance premiums worldwide is paid to mutuals .
These interactions were fascinating and hugely valuable . A common theme was that because there is not an equity stakeholder looking for a return , which in essence is a leakage from the mutual ecosystem , the value that can be channelled back to members is so much more . How that value is channelled back can differ widely between organisations . Sometimes it is in community investments , richer benefits or lower premiums than competitors can provide . But almost always , it resonates with the purpose of those organisations . That purpose runs deep in mutuals . And this resonated with us at PPS . As a company with a unique mutual model , we feel a deep purpose towards assisting our members . This can and should be beyond the excellent product solutions and Profit-Share our members benefit from . As a management team , we continuously challenge ourselves on this value and assistance to our members .
Regarding Profit-Share , we are fast approaching our results announcement in April . As we all know , the investment markets were tough in 2022 , which is to be expected after the brilliant run in 2021 . A significant portion of our well-diversified balanced portfolios is invested in overseas assets . Members should , therefore , temper expectations on the investment return side but can look forward to underwriting profit returning , although not yet to pre-COVID-19 levels .
On almost all fronts , PPS has made significant progress in 2022 . Despite an exceptionally challenging environment around us , it was again another record year in terms of new business inflows in most of our businesses . It shows how professional members value our solutions across insurance and investments . It remains a privilege to be part of this community of professionals and to lead a management team that finds another gear when the going gets tough .
2023 promises to be an exceptionally exciting one for PPS .
The theme for this edition of The Professional is success . I share my thoughts on this theme on page 8 .
As always , we trust that you will find this edition enjoyable , educational and value-adding .
Regards ,
PPS Group Executive
Izak Smit
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