Scottish Friendly reports new business sales of £51.1m as the highest in its 162-year history
Total sales increased from £47.7m in 2022 to £51.1m in 2023
The number of Scottish Friendly members also rose to 838,000 over the same period
Leading financial mutual, Scottish Friendly, has reported record-breaking sales of £51.1m APE[1] for 2023, up from £47.7m in 2022 despite significant market and wider economic challenges. The latest new business sales figures are the highest in Scottish Friendly’s 162-year history.
Assets under management also increased from £4.5bn in 2022 to £4.6bn in 2023 and the number of Scottish Friendly members[2] increased by 24,000 to 838,000 over the same period. Scottish Friendly currently administers almost two million policies.
As a mutual Scottish Friendly is customer owned and isn’t driven by the needs of shareholders. Instead, it can focus on continuing to distribute profits to eligible customers. Over 2023, customers who invested in the Scottish Friendly with-profits fund would have enjoyed an extra 2% return to the value of their plan on top of the investment return achieved, demonstrating the value of membership.
Strong protection sales delivered a sizeable uplift in those figures as more people sought to protect their income and family members. However, despite contributing to profits, sales of Scottish Friendly’s own-brand investment ISAs and JISAs fell in 2023 as the higher interest rate environment led more people opting to save into cash rather than invest in stocks and shares products.
Stephen McGee, Scottish Friendly’s chief executive, said: “It has been another positive year for Scottish Friendly, especially given the wider context of economic and market uncertainty. Despite that, we have we have seen the highest sales growth in our 162-year history and a notable increase in Scottish Friendly members too.
“We continue to deliver on our purpose of helping our members and their families achieve financial well-being through friendly products and customer care and we remain firmly committed to those principles.
“However, despite the backdrop of a record year in 2023, we won’t be resting on our laurels. We have already invested further in the business this year to enhance our operations, technology, security, infrastructure, and talent. But most importantly as a financial mutual we continue to create products and services that promote financial well-being and friendly and accessible customer care. This is part of a re-freshed strategy that will see Scottish Friendly continue to deliver for our customers, both now and over the long-term.”
Alan Rankine, Scottish Friendly’s Chief Financial Officer said: `These figures underline our robust financial fundamentals, strong operating performance, and that, combined with a customer-centric strategy and vision, we are well-positioned to continue to grow. As a financial mutual its fantastic to be able to share the benefits of that strength and success with Scottish Friendly’s members and we are proud to do so.”
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About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
The Group continues to flourish through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.
[1] Industry standard measure of annual premium equivalent – regular premiums plus one tenth of single premiums)
[2] Customers with a qualifying policy