|        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, September 21st, 11:43AM


Latest Headlines

Partners restarts shadow share scheme

Partners Life has launched a second shadow share scheme to drive sales and drive positive outcomes for the industry.

Thursday, July 20th 2017, 12:45PM

Shadow Shares are deferred cash commissions which are linked to the uplift in the value of Partner’s Group Holdings share price, rather than actual shares in the company.

The size of the deferred commission pay-out is linked to the quality of each qualifying tranche of business, with significant pay-out enhancements for higher persistency outcomes.

“We believe this scheme will drive positive outcomes for the industry by encouraging advisers, who entrust their clients to Partners Life because of our outstanding value proposition, to work even harder to retain and review those clients well into the future,” managing director Naomi Ballantyne says.

“We believe this will be attractive to both new and existing advisers by further rewarding them for high quality, persistent business. This is a solution where everyone benefits as the adviser will see both the value of their own asset base increase and participate in the share performance experienced by Partners’ shareholders, while our business value is enhanced through the high quality of business written.”

Under the scheme one shadow share is allocated for every $20 of qualifying API issued and will require a minimum book persistency of 85%, but significantly enhanced bonuses are being paid for increased persistency under the new scheme.

Another difference from the original scheme is that only premiums for non-medical risk benefits will be included, given the proportionately higher profit margins achieved for risk benefits.

The pay-out price will be linked to the listed share price of Partners and will occur sometime between three to five years following the allocation date, depending on when an IPO (or equivalent event) occurs.

Given the scheme is being launched in July rather than at the start of this financial year, Partners is offering double allocations for business written between July 17 and October 31 to maximize the opportunity for its advisers.

Partners says the first scheme has been very successful in attracting and retaining high quality business, with its lapse rate being below that of the market average as reported by the FSC, despite being in the peak exposure period for lapses.

Pay-outs have, so far, been made in respect of the first two years’ tranches.

With Blackstone’s recent investment in Partners Life, and the prospect of an IPO in the next three to five years, the company feels now is an ideal time to launch a further Shadow Share Scheme.

Tags: financial advisers Naomi Ballantyne Partners Life

« Kiwi company attracts $200 million global investmentEDRs: Here's how to protect yourself from churn claims »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment



Printable version  


Email to a friend
Insurance Briefs

AIA reveals grant winners
AIA has revealed the financial advisers and advice businesses that will be given financial backing for their community initiatives.

Insurer nib backs Ronald McDonald House with $20k investment
Health insurer nib New Zealand and its nib foundation have lent support to Ronald McDonald House Charities.

Less stressed during lockdown
New Zealander’s health and wellbeing had surprising benefits from the Covid-19 lockdown.

Southern Cross supports new safe haven for at-risk pets
Southern Cross Pet Insurance has teamed up with Pet Refuge to provide temporary shelter for animals affected by family violence.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
Site by Web Developer and