Mutual life assurance providers OneFamily and Scottish Friendly have announced proposals to merge, in a move which would create one of the UK’s largest mutuals.
The move, subject to regulatory approval, would create a combined mutual with almost £10bn assets under management, serving over 2.3 million members across the UK.
Expected to be effective from early 2027, the merger is a “future-focused choice to create a bigger, more impactful mutual,” the two societies say, “helping families across the UK build financial resilience at a time when traditional safety nets are under strain.”
They add that the move will bring together their “mutual heritage” and combine their strengths with greater scale, delivering “strong propositions, data-driven insight, digital capability and high customer service standards to champion members’ interests and redefine what a modern mutual can deliver”.
Under the proposals, the societies pledge to maintain OneFamily’s base in Brighton and Scottish Friendly’s in Glasgow, with no immediate impact on colleagues.
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“This is a powerful opportunity to build long-term value for our members,” said Scottish Friendly chair John McGuigan, who will maintain his role at the new organisation. “Joining together with OneFamily will create a strong and future-focused mutual life assurer that will be one of the largest in the UK. It’s an important new chapter that builds on our successful heritage and sets a pathway for sustainable growth.
“Our organisations have a great deal in common, and we share pride in our mutual values. By combining, we will benefit from increased scale that will enable us to maximise our potential and make a difference in the market.
“Our shared values, our members and our colleagues will be at the heart of our thinking as we shape our future plans together.”
OneFamily chair Steve Colsell added: “Both our boards recognise the significant opportunity that this presents for us to accelerate the development of our mutual proposition.
“OneFamily has taken some bold steps to progress in recent years, investing in technology and modernisation, and extending the range of products we can offer customers. Joining together with Scottish Friendly is the next step forwards on that journey. We are delighted to have reached this agreement together and are excited to see our plans take shape.”
The combined mutual will operate under the group name of OneFamily and the Scottish Friendly brand will remain as part of a multi-brand group alongside the OneFamily and Beagle Street brands.
“Bringing together these two successful mutuals is an exciting prospect,” said OneFamily CEO Jim Islam, who will head the new organisation. “I am inspired by the potential to pool our strengths and capabilities. Together we will offer a comprehensive investment and protection platform that will support today’s families as they build their financial futures.
“This is an important moment to build a stronger and more sustainable mutual. There is a great deal of commitment from the UK and Scottish Governments in encouraging the growth of the mutual sector, and we see many consumers choosing purpose-led organisations that focus on creating value for members. That’s what sets mutuals apart. Our proposal will mean we will be better placed to maximise this opportunity.”
Scottish Friendly CEO Stephen McGee said: “A merger with OneFamily joins two organisations built on common values, organisations that put customers at the heart of everything we do and who care deeply about their colleagues and their communities.
“By combining and leveraging our respective strengths, we can build on what we have already achieved and accelerate the delivery of our vision.
“Together, we have a significant opportunity to create even greater value for our members, both today and in the future.”
The boards of both organisations have agreed the principles of the merger, and a detailed integration plan will be developed and put in place in the months ahead. Further details will be shared in due course, they add.
