Engage Mutual on track for continued growth

4 August 2010

The mutual provides over 50s life insurance, health cash plans, child trust funds and a range of investment and tax exempt savings vehicles to more than 444,000 customers.

Performance highlights for the six months to date include:

a £1.9m increase in the fund for future appropriations, resulting from a good performance in core insurance operations¹  

nearly 17,500 new policies written, with strong performance across direct, partners, and IFA channels

more than £32m paid out to customers in claims and maturities

strategy for growth on track

As part of its stated long term strategy for growth, Engage Mutual has continued to explore potential acquisition and partner opportunities, and anticipates making a number of announcements over the next few months. 

Members of Engage Mutual are currently being asked to vote in favour of the transfer of part of the long term insurance business of Ecclesiastical Life Limited to the organisation.  The transfer is expected to add 15,000 new members, around £270m to funds under management, and should become effective on 30 November 2010².

Andrew Haigh, Chief Executive at the Yorkshire mutual, summarised:

“We remain firmly committed to a strategy that will deliver a long term future for the organisation, through scale and increased cost effectiveness, secured by a combination of organic growth and market opportunity.”

Financial stability and control of expenses to ensure maximum efficiency continues to be a key focus.

market changes

Engage Mutual was disappointed by the Coalition Government’s recently announced changes to the child trust fund, which are due to take effect from the end of August 2010³. 

Engage Mutual is committed to servicing and supporting its 200,000+ existing child trust fund customers, who will still be able to continue to make payments into their child trust fund after the changes come into effect.

mutual alternative

Engage Mutual has again seen a rise in customer numbers.  The past six months saw a 1.3% increase to 444,645.

Andrew Haigh concluded:

“In a tough climate, that looks set to get tougher, it’s heartening to see that our customer numbers have again increased.  As a customer owned business, we are well placed to continue to offer the consumer a real alternative.”   

- ends -

please note, figures quoted are not audited

For more information, please contact:

Kathryn McLaughlin

Engage Mutual

01423 855 245

Kathryn.mclaughlin@engagemutual.com

1. The fund for future appropriations measures the profit/performance of a mutual friendly society

2. detailed information on the proposed transfer is available at www.engagemutual.com.  No further comment on the proposed transfer will be made until the transaction is complete

3  the Government intends to reduce government contributions at birth, and stop all Government age 7 contributions from 1 August 2010.  The Government also intends for HMRC to stop issuing new CTF vouchers from 1 January 2011.  Vouchers issued prior to this date remain valid, and existing CTF accounts will continue to benefit from tax free investment growth potential. 

NOTES TO EDITORS

1. 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. 

2. Engage Mutual is one of the larger UK mutuals providing simple, value for money savings, protection and investment products.  It currently helps over 438,000 customers of all ages to protect, preserve or enhance their welfare, with some of the most straightforward products on the market.  Engage Mutual 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

3. Engage Mutual supports mutuality, friendly societies and the regional financial services industry through links with the Association of  Financial Mutuals,  Mutuo.

4. Engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with organisations including Yorkshire Building Society.

5. EngageMutual has been the title sponsor of the Rugby Super League since 2005 and has extended its agreement to 2010.

6. 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 Limited, which is the provider of the health cash plan.