2009 was the twelfth consecutive year of net customer growth for Engage Mutual, with total customer numbers increasing by 2.4% to 438,000. Other highlights for the year included:
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the fund for future appropriations (which measures the profit/performance of a mutual friendly society) increased by £1.2m in the year to £31.8m
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group assets under management increased by more than 5% to £624 million
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more than 36,000 new policies written, with 15% of new direct customers referred by existing customers
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regular new premium life savings and protection business increased by more than 3%; £34.9m received in life fund premiums over the year
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Engage Mutual Child Trust Fund contributions increased by 5.3% to £17.6 million
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non profit and with profit funds demonstrated a robust capital ratio, with more than three times coverage of statutory capital requirements
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more than £47 million paid to customers in claims and maturities
Tight control on costs saw expenses, including campaign costs, reduce by 40% but new premium income for life funds reduced by only 17%, largely accounted for by a decision to move away from high commission intermediary single premium business.
Andrew Haigh, Chief Executive, stated:
“Through the challenges of the past year and beyond, our aim has been to remain focused on running an effective and successful business, and to continue to do the best we can for our customers, who are the owners of the business and who share the benefits of our success.”
He continued:
“We were pleased to see good equity investment returns, and continue to work towards achieving greater scale within the organisation by progressing our acquisition strategy. We also remain focused on organic growth, an intention that will be supported by our strategy to become an e-business.”
The focus on e-commerce has delivered more than 70% of Engage Mutual’s new customers via the internet or over the telephone, and the mutual will launch a new website in 2010. The first phase of a strategy for online servicing was launched in 2009, providing the option for more than 210,000 customers to update their details and view their policies online.
healthy efficiencies
Priorities in 2009 were to simplify the health cash plan operation following acquisition of Premier Health Benefits in 2008, and deliver product improvements.
From the payment of claims via direct credit, to a claims turn round commitment of two days from receipt of claim, customer service levels have been improved and further enhancements are planned for the future.
productive partnerships
An existing successful partnership with Yorkshire Bank and Clydesdale Bank for marketing over 50s life insurance, continued in 2009 with the successful launch of Vision, a tax exempt savings plan, which added significant numbers of new customers over the course of the year.
A Funeral Funding Option offered in conjunction with the Co-operative Funeral Care as a free benefit on Engage Mutual’s over 50s life insurance has proved very popular with customers and contributed to more than £1m in revenue for 2009 from the mutual’s insurance operations.
Distribution of the Guaranteed 50 Plus Life Cover Plan via financial intermediaries was further extended through Personal Touch Financial Services, one of the UK’s largest, independently-owned, adviser support networks.
mutual benefits
Continuing its tradition of support for charitable causes, the mutual received a gold award for payroll giving in 2009, for the fourth year running.
The relationship with neighbour, Saint Michael’s Hospice was strengthened by fund raising activities; through Engage Mutual’s membership of the Guild of Patrons; and through sponsorship of the Engage Mutual Midnight Walk. Work also began on laying the foundations for a staff volunteer programme at Saint Michael’s in 2010.
Engage Mutual’s other nominated charity in 2009 was the Alzheimer’s Society.
Super League sponsorship
The mutual confirmed its commitment as title sponsor of the Engage Super League to 2011 and also announced that it would support the work of the Steve Prescott Foundation through 2010. The Foundation raises money for two nominated charities, The RFL Benevolent Fund and the Christie Cancer Hospital in Manchester.
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For more information :
Kathryn McLaughlin
Engage Mutual
01423 855245
NOTES TO EDITORS
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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.
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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
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Engage Mutual 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.
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Engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with organisations including Yorkshire Building Society.
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Engage Mutual has been the title sponsor of the Rugby Super League since 2005 and has extended its agreement to 2010.
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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.
