Fin24 reports that PPS, the financial services firm focused exclusively on graduates and professionals, recorded record inflows in 2022, with both its life insurance and investments businesses faring well in a tough market.

PPS's new business volumes on life insurance grew by 10% in SA for the year ended on 28 February – and gross new investment flows increased by 9%. Its lapse rate, or rate at which policies were not renewed, was also "industry-leading by world standards," CEO Izak Smit indicated. While professionals have not been immune to the effects of a deteriorating economy, SA still faced a shortage of skills, providing some cushion at least, said Smit. The other reason for lower lapses was that professionals started appreciating the value of insurance cover more after Covid-19. Smit said PPS was initially concerned that the financial pressures people faced since Covid-19 would push up the lapse ratios, but its clients held on to their policies. Given its profit-sharing model, PPS paid its members R5 billion in gross benefits, although that was R1.1 billion lower than in 2021. The group made a cumulative profit-share allocation of R32 billion to its members in the past 10 years. The resilience of the professional market has also helped PPS grow its newer venture, PPS Investments, more rapidly. The investment business more than doubled its assets under management (AUM) and the number of investors in the five years to the end of 2022.

• Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24 (subscriber access only)

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