i n c r e a s e yo u r s h a r E

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1 increase your share

2 WHAT IS A mutual COMPANY? A mutual insurer is an insurance company which is collectively owned by its members and which acts in the best interest of its members. By holding one of the qualifying products, members are entitled to vote in the board of directors elections and share in the annual profits and investment returns that are declared. PPS acts in the best interest of its members through: Transparency we conduct our business with the highest standard of governance, integrity, fairness and respect for all stakeholders Competitiveness we recognise the uniqueness of our members by providing them with products to meet their specific needs and provide excellent service Long-term focus we have enduring financial strength PPS s FINANCIAL HIGHLights: 2014 R1.8 billion paid in benefits to members Total Risk premiums received: R2.8 billion PPS Investments new business: more than R3 billion in 2014 Investment returns in excess of 15.4% per annum over the last 10 years Total assets of R26.9 billion The unquestionable financial strength of PPS lies in reserves sufficient to pay every member. The investments of PPS have always been managed in a disciplined and prudent manner, focusing on the long-term interest of current and future members.

3 PPS s TOTAL growth over 10 years BILLIon Rand

4 how do members SHARe in pps profits? The PPS Profit-Share Account is a PPS Provider policy benefit that is automatically created when a member takes out a qualifying product with PPS. What are the benefits of the Profit-Share Account? Protected against creditors whilst unvested The more qualifying products held, the greater the allocations to the PPS Profit-Share Account Utilise your accumulated profit as part of your retirement strategy by transferring to the Vested PPS Profit-Share Account Tax-free amount payable on death or retirement Payable regardless of any claims made Claims and health status have no impact on profit-sharing or the accumulated PPS Profit-Share Account

5 Total cumulative profit-share allocations to members since 2005 BILLIon Rand R3.1 billion was allocated to members ProfIT-SHARe ACCounTS in 2014 Members retiring from PPS in 2014 received R432.2 million from their Profit-Share Accounts.

6 how CAn you increase your SHARe in PPs profits? The more qualifying products you have with PPS, the greater the contribution to the operating profit of PPS and therefore the greater the share in profits allocated to the PPS member s Profit-Share Account. This in turn would lead to greater growth over the long term, ensuring a sizeable tax-free lump sum benefit at retirement or prior death. As at the end of 2014 PPS has created 2370 millionaires through their Profit-Share Accounts. Qualifying products: Sickness and Permanent Incapacity Benefits Professional Life Provider* Professional Health Provider Professional Disability Provider* Accidental Death Product Investments Products (Including non-qualifying spouses-linked PPS Investments products) Profmed Medical Aid benefits** * Differentiated by gender and smoker status ** Members with a Profmed Medical Aid benefit and a PPS Provider Policy will receive a share of the profits of PPS medical schemes administration business

7 VS benefit PRemIUm claims PRofIT-SHARe ACCount benefit PRemIUm claims PRofIT-SHARe ACCount member with: sickness and permanent incapacity benefits professional life provider professional health provider profmed pps investments Member with: sickness and permanent incapacity benefits Illustration depicts PPS Profit-Share account growth over time. Please note that the graph is purely fictional and for illustration purposes only. Past performance of the Profit-Share Account is not necessarily indicative of future performance and returns are dependent on the performance of the underlying assets and various market factors.

8 Disclaimer The Professional Provident Society Holdings Trust No IT 312/2011. PPS Insurance Company Limited Reg. No. 2001/017730/06 (PPS Insurance) - Licence No Please note: all information and opinions provided are of a general nature and are not intended to address the circumstances of any Financial Service Provider s (FSP) clients. We are not acting and do not purport to act in any way as an adviser or in a fiduciary capacity. Any representation or opinion is provided for information purposes only. The information provided in this document is subject to the terms and conditions applicable to any policy issued by PPS Insurance and its subsidiaries. In terms of the Financial Advisory and Intermediary Services Act, FSP s should not provide advice to investors without appropriate risk analysis and after a thorough examination of a particular client s financial situation. We endeavour to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. PPS Insurance will not be held liable or responsible for any direct or consequential loss or damage suffered by any party as a result of that party acting on the basis of the information provided in any of these guides PPS. VERSIon 1/2015