PSG Konsult HEPS exceed pre-COVID-19 period

PSG Konsult, a leading financial services company, has just released its latest interim numbers, showcasing an impressive increase in recurring headline earnings per share (HEPS). The CEO, Francois Gouws, joined CNBC Africa to discuss the company's performance in the face of challenging economic conditions. With a spike of 23 percent to 30.6 cents per share in recurring HEPS, PSG Konsult has managed to exceed its pre-COVID-19 figures. Gouws attributed this success to the company's strategic investments in technology infrastructure and advisors, enabling them to maintain strong client relationships and attract new clients. Despite the disruptions caused by the pandemic, PSG Konsult saw a significant uptick in wealth management business, which accounts for 65% of its earnings. Inflows in this segment reached almost 11 billion rand, underscoring the company's ability to navigate volatile markets and provide diversified investment options for clients. One of the key strategies employed by PSG Konsult was to expose clients not only to South African assets but also to international markets. This diversification proved crucial as it shielded clients from the impact of local market shocks, providing a hedge against uncertainties such as political events and economic fluctuations. During the interview, Gouws addressed concerns around client withdrawals during periods of instability, such as the recent riots. Despite heightened physical security anxieties, clients maintained confidence in the resilience of their portfolios and insurance coverage. As a result, PSG Konsult observed an increase in insurance premiums, reflecting a broader recognition of potential risks and the need for comprehensive coverage. The spike in insurance premiums was also influenced by the aftermath of the riots, which resulted in estimated losses of around 25 billion rand. This significant financial impact prompted a tightening of prices across the insurance sector. While the full extent of these pricing adjustments remains uncertain, the trend indicates a lasting impact on risk pricing, subject to ongoing economic recovery. Regarding business interruption claims, Gouws confirmed PSG Konsult's compliance with regulatory scrutiny and reinsurer requirements. The company has largely resolved outstanding claims related to business interruption, aligning with industry standards and regulatory directives. Gouws expressed confidence in the company's ability to navigate legal judgments and operational challenges, emphasizing the importance of transparency and proactive claims management. In response to questions about potential appeals or legal actions related to business interruption claims, Gouws clarified PSG Konsult's position of prioritizing claims resolution and operational stability. The company's focus on fulfilling client obligations and maintaining financial integrity guides its decision-making, underscoring a commitment to ethical business practices and risk management. As PSG Konsult continues to monitor market trends and adapt to evolving economic conditions, the company remains optimistic about its growth prospects and client relationships. By leveraging technology, diversification strategies, and client-focused services, PSG Konsult stands out as a resilient player in the financial services sector, poised to capitalize on emerging opportunities and navigate challenges with agility and foresight.