Specialist insurance company PPS Mutual has announced the profits that have been assigned to members for the 2017-18 financial year, with members to receive 7 per cent of their total premiums paid in relation to the year plus 2 per cent of the opening balance of their Profit-Share Account.
The news marks the second annual distribution of profits by the member-owned PPS Mutual to its customers, who share in the profits of the insurance they have purchased.
“We are thrilled that we have been able to assign a profit share for the second year in a row. We believe the success of the profit share reflects that our model is viable and that as a mutual we can take a long term view,” chief executive Michael Pillemer said.
“Given the current background of the Hayne Royal Commission and consumer dissatisfaction with traditional providers, we believe the mutual model can offer Australian professionals a radical reappraisal of how life insurance can work.”
PPS Mutual’s profit is retained in a Profit-Share pool within the PPS Mutual Benefit Fund and assignments are made to members individual Profit-Share Accounts each year. This Profit-Share pool is invested by the fund and members’ share of the investment returns are added to their Profit-Share Accounts.
“Our philosophy is that when you purchase PPS Mutual insurance you’re not just a customer, you’re a member. This means you have a real stake in the business and the profits generated by the products,” Pillemer explained.
PPS Mutual members are required to retain their policies for 10 years to gain partial access to the profit share funds. Full access is granted after 20 years or upon reaching age 65, on death, being diagnosed with a terminal illness or on certain other events.
PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of professionals in the world and the largest mutual company in South Africa. PPS Mutual is based on the proven PPS business model that has been hugely successful in South Africa since the 1940s – sharing over $2.2 billion in profits with Members in the last 10 years.
