Glasgow-based mutual Scottish Friendly sees sales hit record high in 2022, but AUM shrink by nearly £1bn

Scottish Friendly, the Glasgow-based mutual, has reported record sales in 2022, but seen assets under management shrink by nearly £1 billion, “reflecting the challenging investment market during the year”.

The organisation said total sales increased to £47.7 million from £46.9m in 2021, with protection sales up by 16 per cent to £29.6m, while revenues of its own-brand investment ISAs decreased by more than a fifth to £14.3m.

Scottish Friendly members increased by 38,000 to 814,000, with more than a million policies administered, but assets under management decreased to £4.5bn from £5.4bn, “reflecting the challenging investment market during the year and the combined impact of premiums received from policyholders and claims paid out”.

The mutual branded the results “resilient” and “reflective of a challenging year” with economic uncertainty and the cost-of-living crisis having impaired “many UK households’ ability to save and invest for the future”. Last year also saw a change at the top for the organisation, with Stephen McGee taking over as chief executive, replacing acting CEO Martin Pringle, who was temporarily in charge of the business after Jim Galbraith passed away in April 2021.

'As the economy begins to recover, we would expect both our new customer numbers and the amounts saved to grow,' says CEO Stephen McGee. Picture: Peter Devlin.

Mr McGee thanked colleagues for their support since his appointment, and said: “Our ambition for Scottish Friendly is to be the UK’s leading mutual insurer… We continue to live in uncertain times, with ongoing challenges facing the economy and the rising cost of living continuing to affect households and our customers. However, as the economy begins to recover, we would expect both our new customer numbers and the amounts saved to grow.”

Scottish Friendly chair David Huntley said 2022 was a “year of significant economic challenges, both in the UK and throughout the world”, adding: “Positive change came with the appointment of our new [chief executive], as well as other senior personnel to further strengthen the leadership team. I have no doubt they will continue to navigate the business through the difficulties of 2023 with grace and determination.”

The mutual’s history stretches back to 1862, and established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.