Engage Mutual sees customers rise
YORKSHIRE-BASED Engage Mutual saw its customers increase by almost 20% last year.
The Harrogate financial services group said that despite continuing challenges in financial markets its cautious approach helped it deliver growth which included an 18% rise in customers, a 21% increase in net premiums written for life funds and more than £54m paid to policyholders in claims in the year to December 31.
Chief executive Andrew Haigh, said: “The playing out of a long term strategy for growth and diversity, together with tight control over expenses and a careful approach to risk, meant that the society was well placed to meet the challenges of the past year.”
“The market conditions experienced in 2008 meant that investment returns were impacted across the industry. As a mutual we focus solely on the interests of our customers and we took steps, wherever possible, to protect them from the worst effects of the market volatility. Looking forward to our next trading year we anticipate continued market challenges, but plan for cautious business growth in areas where we have identified potential.”
The launch of a new health insurance subsidiary, Engage Mutual Insurance, followed by the acquisition of Premier Health Benefits, added 30,000 new health cash plan customers to the society – an important first step in developing a significant health business within the group.
The mutual has announced a two year extension to its sponsorship of the Engage
Super League rugby league.
Engage saw earned premiums increase to £34.4m from £28.6m. Unrealised losses on investments were £56.7m, up from £558,000 in 2007. Investment income fell to £9.4m from £30.8m. Total assets at the year end were £516m, down from £582m the previous year.
Despite an increasingly competitive over 50s market place, Engage maintained its position as one of the country’s leading providers (3rd with an 8% market share) of over 50s life insurance. In addition, more than 24,000 new child trust fund accounts were opened last year bringing the total for Engage to just under 200,000 child trust fund customers.
Engage distributes its products through a range of direct marketing activities, with more than 50% of new business received via online applications in 2008.
Working with partners including Yorkshire Bank owner National Australia Group, and a range of IFA network channels delivered gross new business of £3.5m from life policies during the year.
Engage reaffirmed its commitment to supporting the local community. In addition to sponsoring the Kirkwood Hospice Midnight Memory Walk in Huddersfield, Engage continued to work with Saint Michael’s Hospice in Harrogate – sponsoring the Hospice’s flagship Midnight Walk fund raiser for the second year, and becoming a member of Saint Michael’s Guild of Patrons.
