health
First half premiums for Engage Mutual Health at £3.3m were more than treble the same period last year, while customers received £2.7m in health benefits.
Since entering the health market in July 2008, the current annual premium income has grown to approaching £7m and the Mutual aims to be one of the top 10 health cash plan providers by the end of the year.
Earlier this month, Engage Mutual announced the acquisition of National Friendly’s sales team and the One Fund health cash plan targeted at the corporate market. The launch of One Fund is expected to provide further growth, being distributed into the corporate arena, complementing the direct to consumer health cash plan.
A partnership agreement with York based Benenden Healthcare at the start of the year to deliver and further develop Benenden’s health cash plan has seen Engage Mutual become the service provider and underwriter for more than 15,000 Benenden health cash plans. The mutuals’ relationship provides additional potential opportunities for development.
Investment in growing the health business and enhancing the range of benefits available to health customers will continue over the next 12 months.
underlying strength
capital position:
Despite recent global investment market volatility, a prudent and diverse balance sheet means that recent equity falls have not materially impacted on the mutual’s capital strength, which continues to be very strong.
The fund for future appropriations (a key measure of a mutual’s capital strength) continues to provide a secure foundation for the business at £89.4m, and assets under management are in excess of £925m.
life insurance and savings:
Strong growth in life insurance business ensured that half year premiums stayed level overall at £29.5m, despite a decline in child trust fund premiums, prompted by the withdrawal of the government backed scheme.
Customers received more than £58m in insurance claims, and savings maturities and pay outs, and £1.6m of surplus was transferred to the fund for future appropriations over the period.
customer numbers:
The customer owned business also saw a rise in customer numbers of more than six per cent, an increase fed largely by its health division.
Andrew Haigh concluded:
“Following a successful 2010, which saw the asset base increased by more than 50 per cent, the consolidation of the businesses acquired over the past twelve months continues. Alongside resulting business efficiencies, this process has created 20 new jobs in Yorkshire.
“The UK continues to experience difficult times with a low growth economy, investment market volatility and budget cutbacks set to bite hard. But we are growing our customer numbers and are well positioned to drive the business forward in the second half of the year.”
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For further information contact:
Kathryn McLaughlin
Engage Mutual Assurance
Tel: 01423 855245
Editors notes
Engage Mutual’s over 50s life cover plan, easy save, junior easy save, protected investment bond are provided by Homeowners Friendly Society Limited (HFSL). HFSL is Registered and Incorporated under the Friendly Societies Act 1992, Registered number 964F. HFSL is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 110072.
Engage Mutual’s child trust fund is provided by Engage Mutual Funds Limited (EMFL), Registered number 3224780. EMFL is a wholly owned subsidiary of HFSL and Authorised Corporate Director of Engage Mutual Investment Funds ICVC. Engage Mutual Investment Funds ICVC is an investment company with variable capital. Registered in England number IC00044. EMFL is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 181487.
Engage Mutual’s health cash plan is provided by Engage Mutual Health (EMH). Registered number 515058 of 14 St Cuthbert's Street, Bedford, Bedfordsire MK40 3JU. EMH is a wholly owned subsidiary of Engage Health Holdings Limited (EHHL), which is a wholly owned subsidiary of HFSL. EMH is authorised and regulated by the Financial Services Authority (FSA). EMH’s FSA Register number is 202311. Engage Mutual Health has offices in Harrogate and Bedford.
You can view our details on the FSA’s register http://www.fsa.gov.uk/register/firmSearchForm.do or by contacting the FSA on 0845 606 1234.
Engage Mutual Services Limited (EMSL) is a non-regulated wholly owned subsidiary of HFSL. EMSL is an appointed representative of EMIL. Registered number 3088162.
The following are non-regulated wholly owned subsidiaries of HFSL.; Engage Mutual Administration Limited (EMAL) - Registered number 4301736; Engage Mutual Services Limited (EMSL) - Registered number 3088162; Engage Health Holdings Limited (EHHL) - Registered number 71124.
Engage Mutual Assurance is a trading name of HFSL, EMFL, EMIL, EMH, EHHL, EMAL and EMSL.
Engage Mutual is one of the larger UK mutuals providing simple, value for money savings, protection and investment products to more than 500,000 customers. 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
Engage Mutual has been the title sponsor of the Rugby Super League since 2005 and has extended its agreement to 2011.
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