Scottish Friendly’s protection sales fell year-on-year as management overhauled its proposition.
The mutual sold £33.9m of protection products, which beat their expectations but was 8% below the £36.9m it reported in 2024.
In its financial report for 2025, the mutual said: “As the protection market continued to evolve, partner sales of £33.9m annual premium income (APE) were ahead of plan, but were down year-on-year, reflecting our focus on building our own-brand proposition.
“These partnerships remain a core part of our strategy and continue to be an important driver of both sales and profitability.”
Earlier this year, Scottish Friendly and OneFamily agreed to merge, which will create a mutual with £10bn in assets and a broader product range. The deal is expected to close early next year.
The decline in protection sales did not stop the mutual reporting record overall new business sales of £56.1m during 2025 – the highest in its 164-year history – after climbing up from £50.6m in 2024.
The mutual announced that it will return £23m to eligible members. The funds to be shared with more than 800,000 people include £4.9m though a profit share scheme, where £4.5m was distributed last year.
New sales were in part driven by 60% growth in demand for ISAs, despite a period of prolonged interest rates.
Scottish Friendly chief executive Stephen McGee (pictured), described 2025 as a landmark year for the company.
“We delivered record sales, strong growth in our core ISA products and meaningful returns directly to our members – despite a challenging savings environment,” he said.
“Alongside this performance, we’ve taken important strategic steps that will strengthen the society for the long-term and broaden what we can offer members and ensure Scottish Friendly is well positioned for the future,” he added.
Chief financial officer Alan Rankine said another year of robust performance had demonstrated the resilience and financial strength of the society.
“Our strong capital position and disciplined approach leave us well placed to continue delivering against our strategic objectives and supporting members and their families over the long term,” he added.
