Historic Scottish Friendly unveils merger to create UK mutual giant: pledge on jobs and brand
“This is a powerful opportunity to build long-term value for our members” – John McGuigan, Scottish Friendly chairman
Glasgow-based Scottish Friendly is to merge with OneFamily to create one of the UK’s largest mutual life assurers with some 2.3 million members.
The two firms said they were committed to investing in and maintaining their respective Glasgow and Brighton bases. The enlarged group will also retain the Scottish Friendly, OneFamily and Beagle Street brands. There will be no immediate impact on workers.
The boards of both firms unveiled the proposals to merge, in a move that would see the combined mutual have almost £10 billion of assets under management and serve about 2.3 million customers across the UK.
The merger is expected to be effective from early 2027. However, the proposal will be subject to all necessary approvals, including the regulatory green light.
Bosses described the merger as a “future-focused choice to create a bigger, more impactful mutual, helping families across the UK build financial resilience at a time when traditional safety-nets are under strain”.
The combined organisation will bring together the “mutual heritage and strengths” of both OneFamily and Scottish Friendly and “champion members’ interests and redefine what a modern mutual can deliver”.
Scottish Friendly was founded in Glasgow in 1862 as the City of Glasgow Friendly Society and it now employs some 350 people in its Glasgow office. It has more than 850,000 members across the UK and £4.2bn in assets under management. The mutual offers ISAs (individual savings accounts), junior ISAs and over 50s protection products direct to customers as well as protection products distributed via third parties.
Scottish Friendly also administers a range of products, including books of pensions it has acquired from other UK insurers.
Chairman John McGuigan said: “This is a powerful opportunity to build long-term value for our members. Joining together with OneFamily will create a strong and future-focused mutual life assurer that will be one of the largest in the UK. It’s an important new chapter that builds on our successful heritage and sets a pathway for sustainable growth.
“Our organisations have a great deal in common, and we share pride in our mutual values. By combining, we will benefit from increased scale that will enable us to maximise our potential and make a difference in the market.
“Our shared values, our members and our colleagues will be at the heart of our thinking as we shape our future plans together.”
Scottish Friendly chief executive Stephen McGee said: “A merger with OneFamily joins two organisations built on common values, organisations that put customers at the heart of everything we do and who care deeply about their colleagues and their communities.
“By combining and leveraging our respective strengths, we can build on what we have already achieved and accelerate the delivery of our vision. Together, we have a significant opportunity to create even greater value for our members, both today and in the future.”
OneFamily Formed from a merger of Family Investments and Engage Mutual in 2014, OneFamily has roots going back over 50 years. It employs around 400 colleagues mainly in its Brighton office.
OneFamily has around 1.5 million members and some £5.7bn of assets under management. It offers a range of investment and protection products. In 2022, it acquired Beagle Street, which offers protection products such as life assurance and critical illness cover directly to customers and via financial advisers.
Chairman Steve Colsell said: “Both our boards recognise the significant opportunity that this presents for us to accelerate the development of our mutual proposition. OneFamily has taken some bold steps to progress in recent years, investing in technology and modernisation, and extending the range of products we can offer customers.
“Joining together with Scottish Friendly is the next step forwards on that journey. We are delighted to have reached this agreement together and are excited to see our plans take shape.”
OneFamily chief executive Jim Islam said: “Bringing together these two successful mutuals is an exciting prospect. I am inspired by the potential to pool our strengths and capabilities. Together we will offer a comprehensive investment and protection platform that will support today’s families as they build their financial futures.
“This is an important moment to build a stronger and more sustainable mutual. There is a great deal of commitment from the UK and Scottish governments in encouraging the growth of the mutual sector, and we see many consumers choosing purpose-led organisations that focus on creating value for members. That’s what sets mutuals apart,” he added.
McGuigan will chair the combined organisation, while Islam will be the future chief executive. These appointments will take effect when the merger is effective, and are subject to regulatory approval.
Both organisations offer a complementary range of protection, long-term savings and ISA investment products and have reinforced their customer service with new technology to enable them to better serve members. The new group is promising a “comprehensive platform of investment and protection products” to its members.
Last May saw Scottish Friendly notching up the second highest sales in its history following another period of strong performance.
The mutual reported overall full-year sales of £50.6 million, on an industry standard annual premium equivalent (APE) measure. It credited the result to a “successful execution” of its growth strategy as well as its “commitment to delivering long-term value to its members”. That was slightly below the prior year’s record-breaking new business sales of £51.1m.
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