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Family Investments - Engage Mutual merger

Posted in: Corporate Last updated: 11 Sep 2014

Family Investments proposes to merge with Engage Mutual to create one of the UK's largest mutuals.

  • The combined scale and product offering of the new business would  increase its ability to provide the best financial solutions for families across the UK
  • Through this merger there is an opportunity to fill the gap in the financial services industry for a trusted provider of solutions for families
  • The merger would combine the expertise of both companies, increasing the strength of proposition and solutions that it can provide to families at all key stages of their lives, from parenthood to retirement.

Family Investments announced today an agreement to merge with Engage Mutual and that both will seek approval from their respective members to create the new business.

"The combined business would have over 2 million members, hold approximately £6 billion of assets under management and have in excess of £130m of capital reserves."

The combined business would have over 2 million members, hold approximately £6 billion of assets under management and have in excess of £130m of capital reserves. Members of both boards and executive teams would be represented in the new organisation, with Family CEO Simon Markey as Chief Executive and Engage Mutual’s Christina McComb, as Chairman of the merged business.

The merger would combine the expertise and product strengths of both organisations and increase the scale at which they can provide solutions for families at key life stages, from parenthood to retirement. Family Investments’ market leading position in products for family and children’s saving, such as the Junior ISA, would be augmented by Engage’s product expertise for older adults.

Simon Markey, Chief Executive said:

"After many months of careful consideration we are delighted to recommend this merger to our members. Engage has a very strong performance record and both their culture and customer-base complement ours. This is about two strong mutuals joining forces to create a bigger, more effective business, delivering greater value and long term benefits for our members and communities."

"Family already looks after the savings of almost two million families and since 2008, we've managed the Post Office ISA, helping adults save for their future too. 2013 saw strong financial results with profits increasing by 30%. Now we want to take the next step, investing in order to increase our solutions for families as their needs change. Families across the UK are crying out for a proposition they can trust from a business that understands their changing needs. We passionately believe this merger will provide this opportunity for existing and future members of both organisations."

The proposed merger remains subject to regulatory approval, legal conditions and support from the members of both companies. Details and voting packs on the proposed merger will be sent to members from both Family Investments and Engage later this year with the result announced on both organisations' websites .
It is expected, subject to member and regulatory approval that the merger will conclude in the first half of 2015.

-ENDS-

The Merger Proposal

To proceed the proposed merger requires the approval of 75 per cent of members who vote and is then subject to regulatory approval. It is expected, subject to approvals that the merger will conclude in the first half of 2015 with the formal statutory transfer of engagements comprising, amongst other things, all Engage assets, rights, obligations and liabilities to Family. Details and voting packs on the proposed merger will be sent to members from both Family Investments and Engage later in the year with the result announced on both organisations' websites following a Special General Meeting.

About Family Investments

Family Investments is dedicated to being the trusted provider of financial solutions for the family and looks after more than £4.9billion* of family money for around 2million people in the UK. Family Investments is a mutual with almost 40 years' experience providing investments for families. Owned by their members meaning they are directly answerable to them. They are the leading provider of Child Trust Funds with over 1.2m CTF accounts, are an award winning provider of Junior ISAs, and are broadening their business to provide solutions for each key stage of family life - be it buying a house, funding university, putting offspring onto the property ladder, planning for retirement or paying for health care costs. Family Investments is the trading name of Family Assurance Friendly Society Limited and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Visit our website: www.family.co.uk *As per the audited accounts at 31 December 2013. Current unaudited balance of funds under management stand at £5.2bn as at 31 August 2014.

About Engage

Engage Mutual is one of the larger UK mutuals providing simple, value for money, health, protection, savings and investment products to around 500,000 customers. Engage Mutual Assurance is a trading style of Homeowners Friendly Society Limited (HFSL) which provides over 50s life cover plan, easy save, junior easy save and protected investment bond. HFSL is registered and incorporated under the Friendly Societies Act 1992, registered number 964F. HFSL is authorised by the Prudential Regulatory Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA). HFSL's Financial Services Register Number is 110072.