{"id":73890,"date":"2024-10-29T12:46:19","date_gmt":"2024-10-29T02:46:19","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=73890"},"modified":"2024-11-07T11:02:55","modified_gmt":"2024-11-07T01:02:55","slug":"pps-mutual-surpasses-10m-in-profit-share-pool","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2024\/10\/29\/pps-mutual-surpasses-10m-in-profit-share-pool\/","title":{"rendered":"PPS Mutual Surpasses $10M in Profit-Share Pool"},"content":{"rendered":"

PPS Mutual has announced its profit-share pool has surpassed A$10.7 million for the 2023-24 financial year.<\/p>\n

The company says this marks the eighth consecutive year of its profit-share arrangement, where each member is entitled to share in the profits of the business. For this financial year, PPS Mutual has allocated more than $3.07 million to its members.<\/p>\n

It says that since its inception in 2016 it has shared profits with members each year.<\/p>\n

\"\"<\/a>
Michael Pillemer<\/figcaption><\/figure>\n

\u201cThe profit-share pool has more than quadrupled in four years \u2013 from A$2.4 million in 2019-20 to A$10.7 million in 2023-24. This growth highlights the strong performance of PPS Mutual’s business and the effectiveness of the mutual model.\u201d<\/p>\n

The company notes it’s the only retail life insurance company in Australia with a profit-share arrangement.<\/p>\n

\u201cInsurance premiums are pooled to cover claims, operational costs, and future capital reserves; any surplus is deemed profit, and all members are entitled to a share. Assignment rates vary each year, and members enjoy profit-sharing privileges even in the event of a claim. The 2023-24FY allocation reflects an assignment rate of 3.5% of premiums, based on a pre-tax profit margin of 5%.\u201d<\/p>\n

PPS Mutual Chief Executive Michael Pillemer<\/strong> says the company is proud to surpass A$10 million in its profit-share pool \u201c\u2026a testament to the value we bring to the \u2026professionals we serve in Australia. Our members continue to see growth in their profit-share accounts\u2014one has even accrued over $40,000…\u201d<\/p>\n

… profit-sharing also supports the firm\u2019s network of accredited advisers…<\/p><\/blockquote>\n

He says that profit-sharing also supports the firm\u2019s network of accredited advisers \u201c\u2026who play a key role in delivering this value. This approach generates sustainable, higher-value business for advisers\u2014one advisory firm has over $1 million in total profit-share assignments for their clients, while one adviser alone has over $700,000 in client profit-share balances.\u201d<\/p>\n

Pillemer attributes PPS Mutual\u2019s strong client retention and satisfaction to its profit-sharing model and mutual structure, which has also driven substantial growth across the business.<\/p>\n

He notes the insurer also has a lapse rate at 4.9%, compared to an industry average of 15.3%. It’s also seen its market share increase from 4% to 5% during the year to June 2024 and a 34.5% compound annual growth rate in in-force premium income since 2021.<\/p>\n

The company’s life insurance policies are available only through independent financial advisers. Members must retain their policies for 10 years to gain partial access to their profit-share funds and can withdraw up to 5% of the balance of their profit-share account balance annually. Full access is granted after 20 years or when members reach 65, and on death, terminal illness and certain other events.<\/p>\n","protected":false},"excerpt":{"rendered":"

PPS Mutual has announced its profit-share pool has surpassed A$10.7 million for the 2023-24 financial year. The company says this marks the eighth consecutive year of its profit-share arrangement, where each member is entitled to share in the profits of the business. For this financial year, PPS Mutual has allocated more than $3.07 million to […]<\/p>\n","protected":false},"author":24,"featured_media":73897,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,3],"tags":[],"class_list":{"0":"post-73890","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-company-news","8":"category-general"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/73890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=73890"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/73890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/73897"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=73890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=73890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=73890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}