Engage Mutual recommends merger
ENGAGE Mutual has made a formal recommendation that it merges with Family Investments to create one of the UK’s largest mutual insurers.
The organisation would focus on helping families work together across generations, to save, invest and protect and have more than two million customers.
Harrogate-headquartered Engage, a customer owned life insurance, health and savings provider, will write to members and ask them to consider and vote on the proposed merger in the coming weeks.
Together, Engage and Brighton-based Family would have approximately £6bn assets under management, with members of both boards and executive teams represented in the new organisation. It is envisaged that current Engage chair, Christina McComb would become chair of the joint organisation and Family chief executive, Simon Markey, would become chief executive.
Engage said that from a commercial perspective, greater economies of scale would provide operational efficiencies, enhanced new business opportunities and a larger and improved capital base.
Engage chairman, Christina McComb, said: “It is clear to the board that to join forces with Family would be in the long-term best interests of our members. A merger with Family would accelerate our strategic intent to create a customer-owned business that delivers unmatched value, service and customer benefits. We believe that combining our businesses would demonstrate the value of the mutual model through consolidation of our considerable individual financial strengths while maximising joint skills and capabilities to deliver a broader range of products and services to help families of all ages at key life stages.”
Engage chief executive, Peter Burrows, added: “What matters to us is what matters to our customers. We believe being stronger together as a single business is the best way for us to deliver greater value, long term strength, and make a positive difference to the lives of our customers and their families. We will now seek the approval of our membership to merge with Family on this basis.
“This proposed merger is a very positive decision. No one has forced us, it is two like-minded organisations and individually successful businesses. We’ve both reached the conclusion we can do more together than separately. That’s what makes it very exciting.”
Engage said that should the transaction proceed, the future of the Engage Foundation, its £1m customer benefit fund, would continue. The merged business intends to commit £5m over five years, to expand the foundation.
To proceed, the merger requires the approval of 75% of members who vote of both societies and is then subject to regulatory approval. A special general meeting to request the approval of members will be held later this year in Harrogate.
Addleshaw Goddard is advising Engage on the proposed merger.
