Scottish Friendly funds exceed £1 billion
• Scotland’s largest mutual announces an eight per cent rise in its funds under management
• Total sales rose five per cent in 2014
• Mutual on track to take over Marine & General Mutual in a move that will double assets to over £2 billion
Scottish Friendly, the Glasgow-based financial services group and Scotland’s largest mutual, will today reveal that its funds under management increased to £1,078m in 2014, a rise of eight per cent, up from £997m in the previous year.
At its Annual General Meeting (AGM) today, Scottish Friendly will announce that the increase comes on top of a five per cent rise in total sales from £20.6m in 2013 to £21.6m in 2014. Sales are based on the industry standard measure of regular premiums plus one tenth of single premiums.
Strong growth from partnerships, such as the one with Sun Life Direct announced last year, helped to increase sales, increase membership numbers and maintain acquisition costs.
In addition, Scottish Friendly, which specialises in a range of investment, or stocks and shares, ISAs and Junior ISAs aimed at mid-income families, highlighted its strong position for making further progress in 2015.
In February this year, the mutual announced its proposed takeover of Marine and General Mutual (M&GM) in a move that will double Scottish Friendly’s assets to over £2 billion. Subject to final approval, the transfer is due to complete on 31 May 2015.
Fiona McBain, Chief Executive of Scottish Friendly, said: “Scottish Friendly has had a great year and we are very pleased with the progress we have made. Significant business growth continues to build the foundations for long-term success.
“The transfer of M&GM to Scottish Friendly will be the biggest in the group’s history. When complete it will be a landmark moment for our business that will bring great opportunities and significant economies of scale.
“The organisation has adopted a long-term three-part strategy of mergers and consolidations, organic growth and business process outsourcing. We have shown growth on all fronts over the past year and expect to continue to be well-placed to seek out new opportunities in the future.”