The Professional Provident Society (PPS) has returned a record R6.88bn in profit share to its members in the year ended December despite an environment characterised by modest economic growth and volatile global markets.
The unlisted financial services company, which is celebrating its 85th anniversary this year, said it represents a big increase from the previous record of R5.33bn allocated in 2024.
Its members holding life-risk products share in PPS profits through its profit-share account, which remains notional until retirement age of 60 or death.
The R6.88bn profit-share allocation comprises R1.32bn from operating profit and a record high of R5.56bn from investment returns, the company said in a statement.
“This is the second year in a row that we achieved an outstanding record profit-share allocation. For some members, their 2025 profit-share allocation will exceed their total premiums paid — a very clear demonstration of our mutuality in action and our commitment to sharing in the success we create together,” said CEO Izak Smit.
PPS, which has no external shareholders, provides financial solutions exclusively for graduate professionals in South Africa, Namibia, Australia and New Zealand. The group is guided by the ethos of mutuality and strives to create long-term financial security for its members.
Cumulatively, over the past 10 years, PPS has allocated R35.29bn to members’ profit-share accounts, it said.
In its South African business, PPS Life Solutions reported a 6.9% rise in gross earned premium revenue to R6.89bn, while new life risk annual premium income was up 6.1% at R273.2m.
PPS Investments, for the third consecutive year, delivered exceptional results, Smit said, with strong inflows from favourable investment markets.
“The business introduced hyper-personalised portfolios, including tailored retirement income solutions and Shariah-compliant funds, while embedding environmental, social and governance principles into investment processes,” he said.
Total assets under management increased 16.2% to R112.1bn. Gross inflows rose to R11.5bn from R9.67bn a year ago.
PPS Short-Term Insurance, which includes personal and business insurance product lines, had its strongest performance yet, with 16% year-on-year growth in new business premiums and a 22.1% increase in gross written premiums in a saturated, highly competitive market.
Outside its local operations, PPS Insurance Namibia outperformed most competitors, despite operating in a low-growth economy, Smit said. Gross insurance premium revenue increased 9.4% year on year.
PPS Mutual Australia, an affiliate company established 10 years ago, maintained strong business flows and has attained a favourable annual in-force premium of more than A$120m.
“It is now firmly established among the top 10 largest life insurance businesses in terms of new inflows in Australia,” said PPS. It increased its graduate professional membership to 17,000 from 13,000 in 2024.
PPS Mutual New Zealand, launched in August last year, marked the next step in PPS’s international expansion. “Early engagement has been positive, with 110 accredited advisers actively quoting and writing business,” PPS said.
The New Zealand operation will further diversify revenue streams for South African members, PPS said.
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