PPS Namibia allocates N$68m profit to members

FINANCIAL services’ company PPS Namibia has announced the allocation of a N$67,9 million total profit to members for the 2015 financial year.

The company confirmed a 7% increase in total assets to N$944,4 million.

Adri Vermeulen, chief executive of PPS Namibia, said members benefited hugely from their share in the profits of the company in recent years.

‘Over the last five years, PPS Namibia has allocated over N$515,8 million to its members.

The increased interest in the mutuality model is mirrored globally, where the total market share of mutual and cooperative insurers has increased steadily from 23,5% in 2007 to 27,1% in 2014, according to the latest statistics from the International Cooperative and Mutual Insurance Federation (ICMIF).

According to Shaun Tarbuck, CEO of the ICMIF, the increase in the mutual market share highlights the strong benefits of this business model.

‘It can be argued that global markets have experienced a shift in consumer buying behaviour when it comes to financial services, and the global growth of the mutual sector could be as a result of customers reacting against the perceived culture of listed companies.’

In addition to the profit allocation, Vermeulen said gross premium revenue rose 9% to N$119,7 million, while total gross benefits paid to members, including life, dreaded disease and disability claims amounted to N$78,6 million in 2015.