PPS Namibia Operating profit for PPS Namibia increased to N$67.4 million from N$46.0 million in 2021. This was largely as a result of a significant reduction in COVID-19-related sickness and death claims, with total net (of reinsurance) claims reducing from N$81.0 million to N$73.6 million. Gross insurance premium revenue increased year on year by 10% from N$194.6 million to N$213.3 million. The committed and professional way in which PPS Namibia supported members during the pandemic has undoubtedly contributed to new member growth through word-of-mouth referrals. Expenses were well managed, increasing by only 3% in the current period. We continue to introduce new product solutions and services in Namibia shortly after launch in South Africa. Investment markets were under pressure during the year, after a strong performance in 2021, but managed to end the year positive. PPS Mutual (Australia) PPS Mutual, our affiliate business in Australia that started writing business in 2016 is now well established and operating successfully. The business has just under 10 000 members in Australia and has begun to contribute meaningfully to revenue for our South African members by paying royalties. Thank you In 2022, I was again humbled to witness the commitment of our employees through yet another demanding year. As we progress on the culture journey we embarked on five years ago, we are proud to report that our three core values of taking extreme ownership, curiosity and openness to new learning, and doing the right thing, are now firmly embedded. It resonates throughout the organisation and it is heartening to see how these values guide actions and decisions in the business. Despite the many challenges they had to face, our employees continued delivering the high level of service that we pride ourselves on to more than 100 000 homes throughout South Africa. Our teams are stronger than ever. I thank all my colleagues for their hard work and determination and for making 2022 a year in which we could continue to return significant value to our members. The contribution and input of our non-executive board members remain invaluable. It is in unprecedented times that the guidance of a strong and diverse board is especially important. Both the chair of PPS Holdings Trust, Dr Sybil Seoka, and of PPS Insurance, Charles Erasmus, are valued sources of advice and support, as are the chairs of the various other boards and committees. I want to take this opportunity to express my condolences to the staff and members who experienced the loss of loved ones during the year. It is an honour for us at PPS to be able to provide support at times like these. Finally, thank you to our members, who continue to trust us with their financial security. We take this trust and responsibility seriously. Izak Smit Group Executive Officer 29 March 2023 27 Leadership commentary
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