Historic Scottish mutual cheers second-strongest sales in 163-year history
“We remain focused and confident in our ability to deliver on our strategic goals and continue supporting our members’ financial wellbeing” – Alan Rankine, CFO
Scottish Friendly has notched up the second highest sales in its 163-year history following another period of strong performance.
The Glasgow-based mutual reported overall full-year sales of £50.6 million, on an industry standard annual premium equivalent (APE) measure. It credited the result to a “successful execution” of its growth strategy as well as its “commitment to delivering long-term value to its members”. That was slightly below the prior year’s record-breaking new business sales of £51.1m.
Sales of the society’s own brand products saw “significant” growth, increasing by some 30 per cent year-on-year, driven primarily by new ISA (individual savings account) and junior ISA business.
The strong annual performance has enabled it to enhance member benefits, distributing £23m to eligible members, including £4.5m through its profit share scheme in 2024. The society’s solvency position increased to a ratio of 216 per cent, up 26 per cent from the previous year, reflecting “prudent financial management”.
Total assets under management stood at £4.2 billion at the year end, which was slightly down from the previous year due to investment market returns and the net impact of policyholder premiums and claims, it noted.
Stephen McGee, Scottish Friendly’s chief executive, said: “2024 marked another milestone in Scottish Friendly’s rich 163-year history, as we achieved our second-highest sales result to date and shared some profits with our eligible members.
“This is a testament to the strength of our strategy and unwavering focus on delivering meaningful value to our members. Our acquisition from Fidelity International builds on our recent performance and underlines our ambition to scale responsibly while remaining focused on member value.”
The mutual recently announced the acquisition of pension and annuity in-payment books of business from Fidelity International. The deal consists of pensions business comprising £2.14bn of liabilities across 76 schemes and covering in the region of 40,000 policyholders, and the in-payment annuities book with liabilities of £7.3m and some 1,000 annuitants.
Alan Rankine, Scottish Friendly’s chief financial officer, said: “2024 has been another year of solid performance for Scottish Friendly, despite continued geopolitical and economic challenges. Our sales results demonstrate the strength of our business model, while our solvency ratio far exceeds our regulatory requirements, highlighting the financial resilience that underpins everything we do.
“We remain focused and confident in our ability to deliver on our strategic goals and continue supporting our members’ financial wellbeing,” he added.
The group 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.
In 2024, the society also remained committed to making a “positive impact in its local community”, through continued partnerships with organisations such as Action for Children and Developing the Young Workforce.
The member-owned mutual said it also continues to advocate for junior ISA reform, calling for changes that would allow grandparents and other family members to open accounts on behalf of children - thereby making it easier for families “to build financial resilience for the next generation”.
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