Income protection insurance firm PG Mutual has announced another year of record results for the mutual society.

2014 saw premiums increase by 3.8% and total policies increase by 3% compared with 2013. The Society also saw a 4.7% increase in its balance sheet, bringing it to a new record of almost £37m.

It has been able to declare a 3% interest rate to its members and a 25% terminal bonus.

Meanwhile, over the past three years it has maintained a high level of claims payments at 97%.

PG Mutual said its results highlight that people are thinking seriously and strategically about their financial situation and the impact a loss of income could have on their family and lifestyle.

Mike Perry, PG Mutual’s chief executive officer, said, “As with every year, the PG Mutual team has worked really hard to improve on the previous year’s performance, and once again I am delighted we have achieved it.

“We have spent the past year concentrating on improving processes and services. We are especially proud of our new member benefits scheme, giving our members best value deals and discounts on a wide range of products and services from well-known high street brands.

“What is most satisfying is seeing the growth in our membership and realising our message is getting through, that income protection is not an afterthought, it is an essential part of all of our personal financial budgeting. It is scary to think what might happen to us and our families if we were to lose our income due to illness or injury – our growth this year shows that people are no longer adopting the ‘it won’t happen to me’ attitude and are taking positive steps to protect their financial security and lifestyle.”