PPS reports a positive year-end performance as Covid claims subside

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PPS reports a positive year-end performance as Covid claims subside
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SPONSORED | New business flows are a barometer of the health of a financial services business. On both the life insurance side and in our investments business, new inflows were strong in what was a flat market, says PPS_SA Group CEO.

PPS has world-leading low lapse rates, where our members’ policies stay on our books for a generation or more on average, says the group's CEO.providing a diverse range of financial solutions for graduate professionals in SA, Namibia and Australia — experienced a positive financial year in 2022, supporting members and returning value to them.

The number of Covid-19-related sickness claims remained stubbornly high, though reducing by 34% to about 7,700 in 2022 compared to 10,900 in 2021. Covid-19-related death claims dropped significantly to only R39m in 2022 from R975m in 2021. This reduced total death claims by 52% to R957m in 2022 from R2bn in 2021.New business flows are a barometer of the health of a financial services business.

Though claims attributable to Covid-19 declined, which supported underwriting profit, the investment markets substantially affected Profit-Share. Therefore, in 2022, PPS allocated R619m to members with qualifying products’ PPS Profit-Share Accounts compared to R5.5bn in 2021. “While 2021 was a strong year in the investment markets and our funds performed exceptionally well, we cautioned our members against exuberant future expectations.

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