The Mutual was launched in 2003 to offer Capricorn Society Members a competitive alternative to insurance and provides protection tailored to the motor trades industry, through Capricorn Risk Services.
Capricorn Risk Services Chief Executive Jim Glossat said the $100 million milestone was a huge achievement for the Mutual, with the business growing by $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-ofpocket 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.”
Jim said reaching this kind of major milestone was “even sweeter” because the Mutual only offers its products and services to Capricorn Society Members. “This limits the opportunity to grow but conversely it allows us to tailor what we do to the needs of our Members without having to cater for people who are not in the industry.”
Over 10,000 Capricorn Members, just under half of the entire membership, are also Capricorn Mutual Members. Jim said, “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.”
Jim said a prime example of Members needing Capricorn Mutual was seen in the first months of this year, when more than 200 Members were affected by flooding in New South Wales and Queensland. He said Capricorn Mutual will pay out about $35 million to those Members to help them get back on their feet. “This kind of sum shows the progress we’ve made over the years, where we can demonstrate that we are there to protect our Members’ livelihoods even for large-scale events,” he said.
Jim said Capricorn Mutual Members could take comfort from and celebrate the $100 million milestone, precisely because it meant they could be confident in Capricorn Mutual’s ongoing health and value to their lives. He said the milestone means not only that the Mutual continues to have the support of its Members but that it has a solid financial base on which it can continue to grow into the future.
If you’re not protected with Capricorn Mutual, give us a call and speak to one of our Risk Assessment Managers.