Capricorn Mutual Gives Back

$6M PAYDAY AS CAPRICORN MUTUAL SHARES PROFITS WITH MEMBERS

A loyalty windfall of $6 million will be shared among eligible Capricorn Mutual (CML) Members.

Capricorn Mutual Management Chief Executive Officer Jim Glossat said the Member Loyalty Rebate came after several years of exceptional financial performance, including a very strong 2021 Financial Year.

It’s the first time in the Mutual’s history it has declared a rebate.

Jim said CML was in a strong financial position, with more than $130m in assets, and in a good position to provide a rebate to eligible Members in the form of rewards points.

“As a Member-based organisation, CML prices its protections to make only a modest profit — just enough to cover its regulatory requirements,” he said. “However, in addition to our regular claims, we must also price for catastrophe events such as bushfire, hail and flood and we never know when they are going to happen.

“In some years we experience more events than others and we need to ensure that there are always enough funds in the business when those events do happen. This is the first time the CML board has announced a Member Loyalty Rebate, which will be paid out to eligible Members in the form of bonus rewards points.

To be eligible for a rebate, you must have been a Member with CML for at least three continuous years (as at 30 June 2021). The rebate calculation has been designed to reward Members who have stayed with CML and the longer you have been a Member, the bigger the rebate you are eligible to receive. The bonus rewards points will be credited to the Capricorn Trade Account of eligible Members in July.

Letters will be sent to eligible Members in the coming weeks outlining their entitlement which is based on their tenure and 2021 financial year spend with CML.

Jim said the rebate was another good example of the difference choosing to protect your business through a mutual makes. He said CML’s constitution meant Members would reap the benefits when the Mutual performed well, demonstrating the CML commitment to Capricorn Members.

“We’re delighted to be able to return this benefit to Members,” Jim said. “It shows, once again, that we really are stronger together.”