Scottish Friendly reports record £56m sales and £23m returned to members in its 2025 Annual Report and Accounts
- The mutual today announces overall sales of £56.1m, the highest in its 164-year history.
- Scottish Friendly’s own brand Stocks & Shares ISA and Junior ISA products achieved 60% year-on-year sales growth
- £23m profits were distributed to eligible members and £4.9m shared to those invested in the Main With-Profits Fund through the Scottish Friendly ProfitShare scheme.
Scottish Friendly today announces record overall sales of £56.1m APE for the year ended 31 December 2025 - the highest annual total in the society’s history. The Glasgow-based mutual also reported 60% year-on-year growth in its Stocks & Shares ISA and Junior ISA products, underlining strong momentum despite a prolonged period of high interest rates. The results reflect the continued execution of the society’s growth strategy and its focus on delivering long-term value for members.
Key financial highlights
· Record sales: £56.1m APE, the highest in the Society’s history.
· Strong ISA growth: Stocks & Shares ISAs and Junior ISA sales combined up 60% year-on-year.
· Member distributions: £23.0m paid to eligible members, including £4.9m through the ProfitShare scheme.
· Assets under management: £4.4bn (2024: £4.3bn) driven by positive market returns and net premium flows.
· Capital strength: Solvency II Pillar 1 capital ratio of 197%, remaining well above regulatory requirements.
Strategic developments
Building on this strong financial performance, Scottish Friendly also made significant strategic progress during the year, taking further steps to strengthen the Society’s long‑term scale, resilience and member proposition.
Acquisition from Fidelity International
· In 2025, Scottish Friendly agreed the acquisition of pension and annuities in-payment books of business from FIL Life Insurance Limited, part of the Fidelity International Group, including a £2.16bn block of unit-linked Section 32 pensions for around 40,000 policyholders. Subject to Court approval, the transfer is expected to complete in September 2026.
Proposed merger with OneFamily
· Earlier this year, Scottish Friendly and OneFamily announced plans to merge, bringing together two like-minded mutual organisations to create a larger mutual with a broader product range for members. Subject to regulatory approval, the merger is expected to take effect in early 2027 and aligns with the Government’s ambition to double the size of the mutual and co-operative sector.
Supporting families invest for young people
· As part of its ongoing commitment to helping the family unit prosper, Scottish Friendly continues to champion reform of Junior ISA rules to allow grandparents and other family members to open accounts directly, helping families play a more active role in supporting children’s financial futures.
Stephen McGee, Scottish Friendly’s Chief Executive, said: “2025 was a landmark year for Scottish Friendly. We delivered record sales, strong growth in our core ISA products and meaningful returns directly to our members - despite a challenging savings environment.
“Alongside this performance, we’ve taken important strategic steps that will strengthen the society for the long-term and broaden what we can offer members and ensure Scottish Friendly is well positioned for the future.”
Alan Rankine, Scottish Friendly’s Chief Financial Officer, said: “This has been another year of robust performance, once again demonstrating the resilience and financial strength of the society. Our strong capital position and disciplined approach leave us well placed to continue delivering against our strategic objectives and supporting members and their families over the long term.”