PPS Mutual Reaches $15m Profit-Share Milestone

PPS Mutual’s profit-share pool has reached $15m for the 2024-25 financial year. Almost $4m has been allocated to its members this financial year, marking the ninth consecutive year of its profit-share arrangement.

The mutual’s adviser network is also benefiting from the profit-share model, states CEO Michael Pillemer, with three advice firms managing more than $1m in client profit-share balances, seven firms above $500,000, and 31 advisers each with clients whose combined balances exceed $100,000.

“This growing depth of engagement is reflected in PPS Mutual’s industry-leading retention,” said Pillemer. “The company’s annual lapse rate sits at just 5.1%. in 2024-25, compared to an industry average of 14.1%.

“That level of loyalty shows the deep trust members place in PPS Mutual and highlights the strong alignment of interests that only a mutual model can deliver.”

Pillemer said the organisation’s aim is to show that life insurance can be more than protection.

Since its inception in 2016, the organisation has consistently shared profits with members each year. In the past 12 months alone, the pool grew by 31%.

PPS Mutual is unique in the Australian life insurance market, combining mutuality with its profit-share model.

Under this model, premiums are pooled to meet claims, operational expenses and future capital reserves, with remaining surplus distributed back to members.

For 2024–25, the allocation equated to 3.5% of premiums, together with a 5% interest credit to member account balances.

Pillemer said: “The profit-share pool has grown almost sixfold in just five years. That trajectory shows how powerful this model can be in building lasting value for members over their entire professional lives.”

Pillemer said more than 100 members have now accrued more than $10,000, 17 have exceeded $20,000, and nearly 400 hold balances above $5,000.

PPS Mutual’s life insurance products are available through accredited independent financial advisers. Members must retain their policies for 10 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 conditions.