Your IndustrySep 18 2014

Family Investments and Engage Mutual to merge

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by

Family Investments plans to merge with Engage Mutual Assurance in an effort to create “a bigger, more effective business” with more than two million members, Family Investments chief executive Simon Markey has said.

Mr Markey said the move is “about two strong mutuals joining forces”. If approved by members and regulators, the merger would create one of the UK’s largest mutuals, with more than two million members, around £6bn in assets under management and roughly £130m in capital reserves.

Under current plans, the new organisation will appoint Family Investments boss Simon Markey as its chief executive and Christina McComb, chair of Engage Mutual Assurance, as chairman.

Engage Mutual Assurance said its £1m customer benefit fund would continue to exist if a deal went ahead. A statement said: “The merged business intends to commit £5m over five years, which would expand the foundation significantly.”

Key facts
According to its audited accounts as of 31 December 2013, Family Investments looks after £4.9bn of family money for around two million people in the UK
Engage Mutual Assurance has more than £900m in assets under management

Engage Mutual Assurance chief executive Peter Burrows said: “We believe being stronger together as a single business is the best way for us to deliver greater value [and] long-term strength and make a positive difference to the lives of our customers and their families.”

In its own statement, Family Investments said the new company would “increase the scale at which they can provide solutions for families at key life stages”.

The statement added: “Family Investments’ market-leading position in products for family and childrens’ saving, such as the Junior Isa, would be augmented by Engage’s product expertise for older adults.”

If a deal is approved, it is believed the merger will conclude in the first half of 2015.

Mr Markey said: “2013 saw strong financial results, with profits increasing by 30 per cent. Now we want to take the next step, investing in order to increase our solutions for families as their needs change.”

He added that Engage Mutual Assurance “has a very strong performance record and both their culture and customer base complement ours”.

Adviser view

Mel Kenny, chartered financial planner for London-based Radcliffe and Newlands, said: “It is clearly a pooling of resources to lower costs and allow them to concentrate on their front-end propositions, whether savings for youngsters or older adults.”