The Professional Provident Society has delivered a record profit share for the second consecutive year, with the graduate professionals’ mutual allocating R6.88 billion to its South African members’ notional accounts for the year ended 31 December 2025. That figure represents a 28% increase from the previous record of R5.33 billion allocated in 2024, underscoring the financial strength of an institution that has operated without external shareholders since 1941.
The profit share comprised R1.32 billion in operating profit and an all-time high of R5.56 billion in investment returns, driven by strong portfolio performance across asset classes. Chief executive Izak Smit noted that for some members, their 2025 allocation exceeded their total premiums paid, a phenomenon the group presents as evidence of its mutual model at work.
The member-owned financial services provider, which exclusively serves graduate professionals such as lawyers, doctors and chartered accountants across South Africa, Namibia, Australia and New Zealand, distributes its solutions primarily through external advisors, who account for about three-quarters of new business.
Profit allocations to members with qualifying products are invested on their behalf and typically vest upon retirement or death, though early access is permitted for qualifying events subject to a fee. The group’s life insurance arm, PPS Life Solutions, reported gross earned premium revenue of R6.89 billion, a 6.9% increase from 2024, while the lapse rate remained low at just under 4.6%.
Total life claims for 2025 reached 23,016 with a combined value of R4.39 billion. Paid life cover benefits rose 35.8% to R1.5 billion, driven by higher mortality claims, while sickness claims increased 6.3% to R983.6 million. The most dramatic movement came from critical illness claims, which surged nearly 51% to R792.8 million.
That jump was partially offset by a 34% decline in lump-sum disability benefits, which fell to R102.3 million. Permanent incapacity benefit claims totalled R1.01 billion, up 7% from 2024. These figures reflect a shifting risk profile among the graduate professional membership base, with critical conditions driving an increasingly large share of claims activity.
Beyond life insurance, PPS Investments saw total assets under management rise 16.2% to R112.1 billion, with gross inflows climbing from R9.67 billion in 2024 to R11.5 billion. The investment unit introduced Shari’ah-compliant funds and tailored retirement income solutions during the year. The combined short-term insurance and health professions indemnity business reported gross written premiums of R517.3 million, a 22.7% increase from R421.5 million in 2024, with profit before tax more than doubling from R31.3 million to R85.3 million.
PPS Healthcare Administrators grew its South African membership by 21.7% to 152,633, supported by additional business for mental wellbeing services to the Witbank Coalfields Medical Aid Scheme and claim verification services to the Chartered Accountants Medical Aid Fund.
The group’s international expansion continues to gain traction. PPS Insurance Namibia delivered a 9.4% increase in gross insurance premium revenue to N$279.8 million, with members’ profit share climbing from N$263.9 million in 2024 to N$367.3 million on the back of strong investment market returns. PPS Mutual Australia, an affiliate company established a decade ago, has achieved an annual in-force premium exceeding A$120 million (R1.40 billion) with graduate professional membership now at 17,000.
PPS Mutual New Zealand, launched only in August 2025, now has 110 accredited advisers actively quoting and writing business. As the group marks its 85th anniversary in 2026, Smit reaffirmed the organisation’s commitment to long-term value creation rooted in mutuality.