Financial mutual Scottish Friendly has today reported new business sales of £51.1m for 2023 – the highest in its 162-year history, and has pointed to a 28% increase in protection sales as a driving force behind those numbers.
Scottish Friendly told Health & Protection that new protection sales represented £38m of the £51.1 total – or 74% of total sales.
New protection sales increased by £8.4m over 2022, when Scottish Friendly reported £29.6m, which itself was an increase from £25m in 2021.
Meanwhile, total sales increased from £47.7m in 2022 to £51.1m in 2023, while the number of Scottish Friendly members also rose to 838,000 over the same period. That represented an increase of 24,000 members over the previous year.
Stephen McGee, CEO of Scottish Friendly (pictured) told Heath & Protection in an interview today that much of the success in sales was due to partnership deals, with two of the biggest being with Guardian Financial Services and Neilson Financial Services.
And looking ahead, he added there is no shortage of potential partnerships for Scottish Friendly, but it’s all about choosing the right ones.
McGee told Health & Protection: “There are lots, but picking the right ones because we do have to make the most of our limited resources is a key thing.”
As for new products on the horizon, McGee noted that: “we have actually rationalised the products that we sell.
“We have three on brand products – we sell more through partners.”
“We definitely have a number on the horizon, but we’re looking to actually make investments in our systems to enable us to actually add products that are really as good, as the ones we currently have.”
Meanwhile, assets under management also increased from £4.5bn in 2022 to £4.6bn in 2023 and Scottish Friendly member numbers increased by 24,000 to 838,000 over the same period.
Scottish Friendly currently administers almost two million policies.
Over 2023, the mutual noted customers who invested in the Scottish Friendly with-profits fund received an extra 2% return to the value of their plan on top of the investment return.
But, despite contributing to profits, Scottish Friendly added sales of its own-brand investment ISAs and JISAs fell in 2023 which is attributed to the higher interest rate environment leading more people opting to save into cash rather than invest in stocks and shares products.
McGee said: “It has been another positive year for Scottish Friendly, especially given the wider context of economic and market uncertainty.
“Despite that, we have we have seen the highest sales growth in our 162-year history and a notable increase in Scottish Friendly members too.
“We continue to deliver on our purpose of helping our members and their families achieve financial well-being through friendly products and customer care and we remain firmly committed to those principles.
“However, despite the backdrop of a record year in 2023, we won’t be resting on our laurels.
“We have already invested further in the business this year to enhance our operations, technology, security, infrastructure, and talent.
“But most importantly as a financial mutual we continue to create products and services that promote financial wellbeing and friendly and accessible customer care.
“This is part of a refreshed strategy that will see Scottish Friendly continue to deliver for our customers, both now and over the long-term.”
Alan Rankine, chief financial officer at Scottish Friendly, added: “These figures underline our robust financial fundamentals, strong operating performance, and that, combined with a customer-centric strategy and vision, we are well-positioned to continue to grow.
“As a financial mutual its fantastic to be able to share the benefits of that strength and success with Scottish Friendly’s members and we are proud to do so.”