PAFS policyholders may be in line for a windfall after it was announced that a financial backer is looking to invest in the society.
The announcement, which was made at the society's annual general meeting (AGM), follows a recent review by PAFS' committee of management, which concluded that both the society and its policyholders would benefit from access to more capital to expand the business.
KPMG, working on behalf of PAFS, succeeded in attracting interest from a number of investors, but the committee is now in talks with a single financial backer who is willing to invest the necessary funds to grow the business.
Under the terms of the proposed deal, PAFS will transfer from a mutual to a private limited company and the investment will result in a one-off payment for all members of the society.
The news means PAFS can now look at significantly growing its business.
"As a mutual, all our policy holders were owners of the business and we could not ask them to put more money in, but due to the reception that our propositions have received we needed more money to fund our expansion," explained Mike Douglas, general manager at PAFS.
"We did not want to have to wait until we needed money desperately, so we went and found a partner that was happy to come in with us," Douglas added.
Policyholders at the AGM were also told of a strong financial performance by PAFS in 2004, as new business at the society rose by 130%.
