PPS Mutual’s profit-share pool reaches A$19.6 million in tenth anniversary year
Michael Pillemer
Specialist insurance company PPS Mutual has announced its tenth consecutive annual Profit-Share allocation, with its Profit-Share pool reaching A$19.6 million at the end of the 2025-26 financial year, up 30% on the previous year.
A further A$4.7 million was assigned to Members’ Profit-Share Accounts during the year, a 24% increase in the annual allocation. The milestone closes out a landmark anniversary year for PPS Mutual, which marked a decade in the Australian market in June and has now shared profits with Members every year since inception.
Since launching in Australia in 2016, PPS Mutual has built the only Profit-Share model of its kind in the Australian life insurance market. Under the model, Members may receive a share of the profits generated by their policies, based on factors including operating margins, claims experience and investment returns. For 2025-26, PPS Mutual declared Profit-Share rates of 3.15% of premiums and 6.5% of opening balances. PPS Mutual’s membership has now grown to more than 18,000 professionals.
PPS Mutual Chief Executive Officer Michael Pillemer said the tenth annual assignment represented an important milestone for the business and its Members: “A decade ago, we set out to prove that mutuality is not a nostalgic alternative to modern insurance, but a durable one – an ownership model where the interests of the life insurance company and the insured are directly aligned. Ten consecutive annual Profit-Share assignments and a pool now approaching A$20 million provide the empirical case for that thesis. When those interests are aligned, value can build over time and be shared with the Members who helped create it.”
Individual Member balances continue to build meaningfully. The highest Profit-Share Account balance held by a Member now stands at A$54,000, with 131 Members holding balances above A$10,000 and 489 Members above A$5,000.
“Behind each of those balances is a professional receiving additional long-term value alongside the life insurance protection they hold,” Pillemer added. “That is the power of the model – the life insurance protecting Members and their families can also build additional value for them over time. Seeing those balances become meaningful for a growing number of Members is one of the outcomes we are proudest of.”
As the earliest Members reach the ten-year access threshold, funds are increasingly flowing back to them directly. To date, 54 Members have withdrawn more than A$239,000 collectively, including five Members who have accessed more than A$10,000, 17 who have accessed between A$5,000 and A$10,000, and 32 who have accessed up to A$5,000.
The growth in Profit-Share Account balances is also creating an increasingly meaningful source of value across PPS Mutual’s accredited adviser network. Thirty-eight advisers now have more than A$100,000 in combined client Profit-Share Account balances, while eight advice firms have combined client balances exceeding A$500,000 and three have balances exceeding A$1 million.
“Risk advisers are central to everything we have built,” Pillemer said. “The fact that 38 advisers now have more than A$100,000 in combined Profit-Share Account balances across their clients is a strong indication of the trust they have placed in the model, and trust is not given lightly in this industry. Advisers support the model because they can see it delivering value for their clients over the life of a policy. When an insurer’s interests are aligned with the people it serves, advisers have a proposition they can confidently stand behind for the long term.”
This engagement is also reflected in PPS Mutual’s standing among advisers. The company has recorded the leading Net Promoter Score in the Australian life insurance industry for four consecutive years, most recently achieving an NPS of 54.8 against an industry average of 9.5.
PPS Mutual has also been named Best Retail Life Insurer of the Year in successive Adviser Ratings surveys. Its annual lapse rate of 6.4% compares favourably with the industry average of 14.3%.* The company is a member of both the Business Council of Co-operatives and Mutuals and the International Cooperative and Mutual Insurance Federation, reflecting its position within the Australian and global mutual and cooperative movement.
“Our first decade was about proving the model,” Pillemer continued. “Our next is about scaling it – deepening the value we return to Members and extending the affinity dividend that comes from building around a defined group of professionals. Ultimately, our ambition is to deliver better long-term outcomes by ensuring the success of the business is shared with the Members who make it possible.”
PPS Mutual’s life insurance products are available exclusively through accredited independent financial advisers. Members must retain their policies for ten years to gain partial access to their Profit-Share funds, with withdrawals of up to 5% of the balance permitted each year. Full access is granted after 20 years, when Members reach age 65, or in the event of death, terminal illness or certain other qualifying circumstances.
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