Australian ICMIF member Capricorn Mutual exceeded AUD 100 million in sales (gross protection revenue) in 2022 for the first time in its 20-year history, despite having paid out record sums for claims during one of Australia’s biggest natural disasters in early 2022. More than 200 Capricorn members affected by the devastating New South Wales and Queensland floods received approximately AUD 35 million in support from Capricorn Mutual.
Formed in 2003 exclusively for members of Capricorn Society, Australia’s largest motoring cooperative, Capricorn Mutual is a non-profit mutual established to provide its members and their associates a competitive alternative to insurance, offering market leading protections tailored to the motor trades industry. Capricorn Mutual is a discretionary mutual and unlike an insurance company, operates as a non-profit entity solely for the benefit of its members. As a discretionary mutual, the Board of Capricorn Mutual exercise a number of discretions including membership admittance, scope of protections and claims decisions.
Capricorn Risk Services CEO, Jim Glossat, said the AUD 100 million milestone was a huge achievement for the mutual company, with the business growing by AUD 50 million in sales in just the past five years.
“It is recognition of the sustainable nature of our Mutual operating model, which relies on a focus on the automotive industry, face-to-face service and the support of our Members,” he said.
“Being a Mutual — whereby Members are the owners of the business as well as its customers — means we can focus solely on our purpose, which is to support our Members in their greatest times of need without having to worry about external investors wanting their share of the profits.
“In particularly good years where claims costs have been lower than we expected, we return excess profits directly back to Members in the form of a Loyalty Rebate — reducing the out-of-pocket cost of protection. The remaining profits are reinvested back into the business in the form of additional services and improved pricing to ensure our Mutual provides a product our Members need, at a competitive price.”
Over 10,000 Capricorn Members, just under half of the entire membership, are also Capricorn Mutual Members.
“With the support of our Members, Capricorn Mutual can boast a strong financial footing with higher than 10% annual growth and the capacity to pay claims when Members need us most. This is a well-established business that pays its own way and will be there for its Members well into the future.” Mr Glossat added.