Engage Mutual on track for continued growth

Posted in: Corporate Last updated: 04 Aug 2010

Engage Mutual has announced a robust set of half year figures, demonstrating that the customer owned organisation remains on track for continued growth.

The mutual provides over 50s life insurance, health cash plans, child trust funds and a range of investment and tax exempt savings vehicles to more than 444,000 customers.

Performance highlights for the six months to date include:

£1.9m increase in the fund for future appropriations, resulting from a good performance in core insurance operations1

Nearly 17,500 new policies written, with strong performance across direct, partners, and IFA channels

More than £32m paid out to customers in claims and maturities

Strategy for growth on track

As part of its stated long term strategy for growth, Engage Mutual has continued to explore potential acquisition and partner opportunities, and anticipates making a number of announcements over the next few months.

Members of Engage Mutual are currently being asked to vote in favour of the transfer of part of the long term insurance business of Ecclesiastical Life Limited to the organisation.  The transfer is expected to add 15,000 new members, around £270m to funds under management, and should become effective on 30 November 20102.

Andrew Haigh, Chief Executive at the Yorkshire mutual, summarised:

“We remain firmly committed to a strategy that will deliver a long term future for the organisation, through scale and increased cost effectiveness, secured by a combination of organic growth and market opportunity.”

Financial stability and control of expenses to ensure maximum efficiency continues to be a key focus.

Market changes

Engage Mutual was disappointed by the Coalition Government’s recently announced changes to the child trust fund, which are due to take effect from the end of August 20103.

Engage Mutual is committed to servicing and supporting its 200,000+ existing child trust fund customers, who will still be able to continue to make payments into their child trust fund after the changes come into effect.

Mutual alternative

Engage Mutual has again seen a rise in customer numbers.  The past six months saw a 1.3% increase to 444,645.

Andrew Haigh concluded:

“In a tough climate, that looks set to get tougher, it’s heartening to see that our customer numbers have again increased.  As a customer owned business, we are well placed to continue to offer the consumer a real alternative.”