mutual is vibrant and growing with good half year results

21st October 2009

The Mutual enjoyed a growing customer base for the first six months of 2009, recording 18,000 new policies representing more than 16,500 new customers.

A range of positive results for the first six months of the year, included:

1. strong sales of over 50s life insurance (just short of sales achieved in the first half of 2008) despite an increasingly competitive marketplace and significant economic downturn
2. positive investment returns on unit-linked and child trust fund products
3. more than £24million paid out to customers in claims and maturities
4. tight control on costs has seen campaign expenditure reduce by 55% for the first six months
5. despite this, over £17m in life fund premiums have been received since the start of the year

partnership approach

Existing successful partnerships with Yorkshire Bank and Clydesdale Bank for marketing over 50s life insurance, have recently been extended with the launch of Vision, a tax exempt savings plan.

In partnership with Co-operative Funeralcare, engage Mutual now offers a Funeral Funding Option as a free addition on its over 50s life insurance. This allows payment directly from the policy's proceeds towards funeral expenses, and makes it simpler for family members to carry out the policyholder's personal wishes.

Following entry last year into the health market, engage Mutual has successfully established marketing partnerships with engage Super League clubs to introduce health cash plans to loyal fans. The plans are marketed as part of a healthy lifestyle campaign which is supported by top player ambassadors.

mutual agenda

engage Mutual is committed to delivering tangible benefits of membership; to consistently delivering above and beyond the expectations of our customers and partners; and to doing more to support its local community.

Maintaining a 15 year relationship with Saint Michael's Hospice, engage Mutual recently sponsored the Hospice's annual flagship event, the engage Midnight Walk.

Chief Executive, Andrew Haigh, commented:

"We are pleased that the measures taken to respond to such difficult trading conditions experienced over the past year have delivered such a robust performance. As a mutual we exist for the benefit of our customers, so good news for us is good news for them."

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PLEASE NOTE, FIGURES QUOTED ARE NOT AUDITED

The information in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

For more information contact:
Kathryn McLaughlin
PR Manager
01423 855245
kathryn.mclaughlin@engagemutual.com

notes to Editors:

1. engage Mutual is based in Harrogate and is a member of the Association of Mutual Insurers (AMI), which represents 98% of mutual insurers in the UK. AMI has 38 member organisations which represent 19 million policyholders and £84bn in policies. Mutual insurers currently provide 1.9 million of the child trust funds in the UK, see www.mutualinsurers.org
2. engage Mutual Assurance is a trading name of Homeowners Friendly Society Ltd (HFSL), Registered and incorporated under the Friendly Societies Act 1992, Registered number 964F and its wholly-owned subsidiaries, engage Mutual Funds Limited (eMFL) and engage Mutual Insurance Ltd (eMIL). Both HFSL and eMFL are authorised and regulated by the Financial Services Authority (FSA). HFSL's Register number is 110072, eMFL's Register number is 181487. eMIL is authorised to conduct general insurance business by the Financial Services Commission Gibraltar and is regulated by the Financial Services Authority for the conduct of UK business. eMIL's FSA Register No is 485680. You can check this on the FSA's Register by visiting the FSA website www.fsa.gov.uk or by contacting the FSA on 0845 606 1234.
3. engage is one of the larger UK mutuals providing simple, value for money savings, protection and investment products. It currently helps over 420,000 customers of all ages to protect, preserve or enhance their welfare, with some of the most straightforward products on the market. engage prides itself on being a family-oriented, modern mutual, providing products that help enable households of all kinds to plan their finances to help meet their future needs. More information on engage Mutual is available at www.engagemutual.com
4. engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
5. engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with organisations including Yorkshire Building Society and Scarborough Building Society.
6. engage Mutual has been the title sponsor of the Rugby Super League since 2005 and has extended its agreement to 2010.
7. engage Mutual announced its entry into the health cash plan market in July 2008 following an agreement of partnership with Wakefield & District Hospital's Contributory Scheme (WDHCS). Further to this, 30,000 health cash plan customers transferred from Premier Health Benefits (part of WDHCS) to engage Mutual Insurance Ltd.

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