Specialist mutual sees 2016 income rise by more than a quarter

Staffordshire-based Police Mutual, which represents the interests of almost 300,000 members of the police and armed forces, has seen strong growth in its 150th year.

The not-for-profit group, which includes the Police Mutual and Forces Mutual brands, saw 2016 new business rise by 22%, with total income up by 27%.

Stephen Mann, group CEO, said the performance had benefited from a “virtuous circle”.  

“The stronger our financial performance, the more that can be given back in improving lives for our Police and Military affinities which in turn is leading to higher levels of advocacy which is leading to this strong performance,” he said.

“These are challenging times and supporting our members and customers remains at the heart of everything we do. Our results prove that you can both do the right thing and be a strong performing business.”  

The increase in new business mostly came from organic growth (18% year on year) as well as the early results of the enlarged Forces Mutual business – Police Mutual Group merged its existing Forces Financial brand with Abacus Group, which it acquired in April 2016.

Member numbers now stand at a record level and strong growth was seen across all product lines, added Mr Mann.

“We recognise that it’s a tight environment for our members so our Regular Savings Plans (RSPs), which have no minimum, make saving accessible pretty much to everyone,” he said.

“Over 3,800 new members started the savings habit, and in total Police Mutual paid out £63.7m on maturing plans.”   

2016 also saw the launch of Police Mutual’s new stocks and shares Options ISA with over £43m invested, including eight fixed-term ISA offers to members.

The strong performance also enabled the group to make a £2.4m investment into improving the wellbeing of police and military families throughout the UK.

The £2.4m was delivered through financial education, the group’s Police and Military Foundations, event sponsorships and charity support.
 
In outlook, Mr Mann said the group’s 2017 focus would be to continue momentum.

“The group is now a very different business to seven or eight years ago.  We have strengthened our operation for the next phase of growth, growth that will continue to enable us to focus on the wellbeing of our Police and Military affinities,” he said.

 

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