LFM operates a self-funded proportional discretionary mutual model.
Latevo Farmers Mutual has employed a self funding approach to ensure the long term success of the mutual. This replaces a traditional upfront capitalisation strategy where members would normally be required to make a substantial capital injection.
As the Latevo model has been commercially tested since 2014 and is configured to run a surplus in approximately 85% of years therefore we are able to adopt a self funding approach.
To ensure that Latevo Farmers Mutual has the financial ability to deliver member services and the highest degree of claim payments we are including a 15% capitalisation fee in all protection fees.
Please review the Product Disclosure Statement for more information.