PPS Allocates Over N$148 Million to Members

PPS Namibia, the financial services company focused exclusively on graduate professionals, has announced that total profit share allocations to members for the 2013 financial year rose 32,5% on the previous year to over N$148,8 million.

The company, which is the largest company in Namibia operating under a mutual model – meaning a business that is owned by its members and therefore returns profits to its members rather than shareholders – confirmed an increase of 20,4% in operating profits to N$42,4 million.

Adri Vermeulen, Chief Executive of PPS Namibia, says members have benefited hugely from their ability to share the profits of the company in recent years. “Over the last 10 years, PPS Namibia has allocated more than N$579 million to its members, making it by far the largest and most successful mutual company in Namibia.”

On average, in 2013, PPS Namibia members got 42% of their premiums back in their PPS Profit-Share Accounts, highlights Vermeulen. “This is the vehicle that accumulates PPS members’ profit allocations. Our members have a unique value proposition by belonging to PPS, as they receive all the profits of the company. Upon retirement, they qualify for a lump sum pay out of all the accumulated profits.”

Globally, the mutual industry has performed well over the past few years, says Vermeulen.

According to latest statistics published by the International Cooperative and Mutual Insurance Federation (ICMIF) Chief Executive InSights report, the share of the global insurance market held by mutuals has grown by 26% since 2007, compared to just 11% for the listed insurance sector. “This shows increased consumer confidence in our model of governance, globally.”

Source : The Namibian