Partners drops shadow share scheme

Since it launched, the insurer has offered advisers shadow shares based on the volume and persistency of the business they write. It is a type of “deferred commission” scheme. When it was introduced, it was estimated that advisers would see 40% to 50% of their commission come from shadow shares.

Advisers are allocated a shadow share for each $20 of issued annual premium, net of lapses, each scheme year. Persistency has to be maintained at 85% for at least three years but bonuses are payable when it exceeds 90% and 85%.

Partners said in its latest financial results that it had more than 1576 advisers signed up to the shadow share scheme. “We firmly believe we have a strong value offering to advisers, not only giving them the opportunity to offer their clients the best product in the market but also giving them the opportunity to share in our long-term success through the adviser shadow share scheme. The 2014 year saw our third allocation of shadow shares to advisers, with 1.35m shares allocated at $3.75.

But managing director Naomi Ballantyne said it had always been the company’s intention to only run the scheme for three years, as a way of rewarding the advisers who helped it get started.