October 7, 2019
PPS Mutual has announced its third round of profit share rates to members in relation to the 2019 financial year.
The members of the mutual company will receive a profit-share assignment of 7 percent of premiums paid in relation to the 2019 financial year, reflecting a 10 percent pre-tax profit.
Members have also been assigned a profit-share of 4 percent of opening balances (net of tax), providing strong portfolio growth in a low interest rate environment.
PPS Mutual Chief Executive, Michael Pillemer says, “We will continue making profit share assignments each year to reflect the operational performance of the Benefit Fund including investment returns.”
He added: “We now have advisers whose clients in total have Profit-Share Account balances in excess of $100,000.”
The rates determine how its owner members share in the profits of the insurance they buy and the assignment follows the 7 percent of premiums plus 2 percent of opening balances for the 2018 financial year.
PPS Mutual stated its members need to retain their policies for 10 years to gain partial access to the profit share funds with full access granted after 20 years or upon reaching age 65, and also on death, terminal illness, and certain other events.
“Our philosophy is that when you purchase PPS Mutual insurance you’re not just a customer, you’re an owner Member.”
“Our philosophy is that when you purchase PPS Mutual insurance you’re not just a customer, you’re an owner Member,” said Pillemer.
“This means you have a real stake in the business and the profits generated by the products. This aids client retention with PPS Mutual’s lapse rates being significantly below the industry average.”
He noted their membership continues to grow significantly, with one percent of all doctors now members.
In Riskinfo’s latest Adviser Focus, Barry Daniels, who has a 36-year career in financial services and property, advocates for the benefits of the mutual life insurance company model (see: Bringing Bank the Mutual Life Insurance Model…).