PPS Insurance Namibia, a leader in tailored financial solutions for graduate professionals, has reaffirmed its commitment to mutuality by allocating a staggering N$1.5 billion to its Namibian members over the past decade. The milestone underscores the company’s unique model, which prioritizes returning value directly to policyholders. In 2024 alone, PPS Namibia allocated N$263.9 million to members’ notional PPS Profit-Share Accounts™, marking another year of exceptional performance driven by robust operational results and strategic investments.
The company’s 2024 results reflect sustained growth across key metrics. Gross insurance premium revenue rose by 9.7% year-on-year to N$255.8 million, up from N$233.3 million in 2023. This growth was bolstered by a 14% increase in new members, who contributed N$16.4 million in annual premium income. Johan van der Westhuizen, Chief Executive Officer of PPS Namibia, attributed this success to the company’s member-centric approach. “Our priority is to honour all valid claims while ensuring that our members share in the success of the business through our Profit-Share model,” he said.
Benefits and claims paid to members totalled N$216.6 million in 2024, reflecting PPS Namibia’s unwavering focus on supporting its policyholders during critical times. Health-related claims accounted for N$83.6 million, a 14.8% increase from the previous year, while life insurance claims surged by 40.8% to N$14.8 million. Despite these payouts, the company maintained financial resilience, recording a 26% increase in operating profit to N$62.3 million, up from N$49.3 million in 2023.
A cornerstone of PPS Namibia’s value proposition is its long-term investment strategy, which delivered N$201.6 million in returns allocated to members’ Profit-Share Accounts™ in 2024. These returns, combined with operational profits, enabled the N$263.9 million allocation—a testament to the effectiveness of the mutual model. “Our ability to invest in growth assets over the long term allows us to maximize returns for members,” van der Westhuizen explained. “However, we caution against over-optimism based on short-term performance, as markets naturally fluctuate.”
The cumulative impact of this strategy is evident in the decade-long tally of N$1.5 billion allocated to Namibian members. This figure highlights the enduring benefits of PPS’s mutual structure, where profits are reinvested for members’ benefit rather than distributed to external shareholders. Globally, mutual insurers like PPS Namibia reinvest nearly a third of premiums back into policyholder value, a stark contrast to traditional shareholder-driven models.
PPS Namibia’s focus on graduate professionals—a demographic with unique financial needs—has fostered loyalty and long-term engagement. The company’s Profit-Share Accounts™, which vest at retirement or upon death, have created 600 “Profit-Share millionaires” in Namibia, including 96 new members added in 2024. “Achieving a million Namibia dollars in one’s Profit-Share Account by retirement age provides a solid foundation for financial independence,” van der Westhuizen noted. “This milestone is a point of pride for us, as it reflects our members’ trust and the tangible value we deliver.”
In 2024, PPS Namibia expanded its product portfolio with the launch of a retirement annuity tailored to professionals’ needs. This offering complements existing solutions like life, disability, and critical illness cover, all designed to adapt to members’ evolving career and personal circumstances. Izak Smit, Group CEO of PPS, emphasized the strategic importance of innovation. “Introducing products like the retirement annuity ensures we remain aligned with our members’ long-term goals,” he said. “Our mutual model thrives when we listen to and anticipate their needs.”
At the heart of PPS Namibia’s success is its mutual structure, which aligns the company’s interests directly with those of its members. Premiums paid by policyholders are reinvested into the business, with operational efficiencies and investment gains flowing back to members via Profit-Share allocations. This contrasts sharply with conventional insurers, where profits often prioritize shareholder dividends. Van der Westhuizen reiterated this philosophy: “Every decision we make is guided by what benefits our members most. Their financial security is our ultimate metric of success.”
As PPS Namibia looks to the future, the company remains committed to enhancing its product suite and deepening member engagement. Plans include leveraging digital tools to streamline claims processing and expanding educational initiatives to help members optimize their financial planning. “Our journey is far from over,” van der Westhuizen concluded. “We aim to set new benchmarks for value creation while staying true to the mutual principles that have defined us for over a decade.”
With a track record of N$1.5 billion returned to members and a relentless focus on innovation, PPS Namibia continues to redefine excellence in Namibia’s financial services sector—proving that success, when shared, benefits everyone.