Engage Mutual looks forward to upbeat future

ENGAGE Mutual has said it is upbeat after achieving growth in its life insurance and health divisions – areas it sees as being key to its strategic future.

The Harrogate-based savings and health insurance group provides life insurance, health and savings products to half a million customers and said in what remains both a tough and competitive market for the financial services industry, it is pleased by its performance, despite reporting a fall in total new business sales and premiums for the year to date.

Engage announced new business sales of £2.7m compared to £2.9m in the same period last year and total premiums of £28.6m – down from £29.8m.

The organisation, which employs 211 people, said new business sales continue to be dominated by over 50s life insurance, which increased by 7% year on year to £1.8m. Health sales continued to increase at the firm, up 14% year on year to £0.4m. 

Engage said the decline in total premiums is in line with sector performance and driven by historical savings products, most notably unit-linked savings where premiums reduced by £1.1m to £3.5m. In contrast, the mutual achieved year on year growth in its key strategic products, with over 50s life insurance premiums increasing by 2% to £12.4m and health premiums increasing by 5% to £3.7m.

Last week Engage Mutual announced the appointment of Peter Burrows as chief executive.

He said: “Our overall performance is in line with our expectations.  Importantly, as we begin to refocus our business, we are continuing to see growth in our core strategic products.

“It’s our customers’ money and the continued strength of their business means that as we put together our future plans, we can begin to act more ambitiously and make additional wider benefits available to customers.  We will be road-testing our ideas in customer forums during October, following which I expect to be able to announce some exciting plans.”