Simon Markey, chief executive of Family Investments, said the changes afoot as a result of a merger with Engage Mutual, which culminated in its the rebranded business relaunching today as Onefamily, “will be quite dramatic.”
In the latest FTAdviser video interview, Mr Markey said a merger with Engage Mutual “creates a much stronger organisation for the benefit of members in terms of capital and the product range where both sets of members get access to both sets of products of both companies”.
He added that the newly combined business will seek to particularly help fill gaps left by mainstream lenders, either through distrust of banks or stricter post-crisis lending practices, including a move into specialist mortgages.
It was in September 2014 that Family Investments announced plans to merge with Engage Mutual Assurance in an effort to create “a bigger, more effective business” with more than two million members.
He revealed advisers could expect new types of cross generational products from the very “modern mutual” once the merger was completed.
Mr Markey said: “Families have come under pressure through the recession. If you look at childcare costs, education costs, trying to get onto the housing ladder, care costs, and changes in pensions, families are getting squeezed from pretty much every angle.
“At the moment, over half of the population actually help their families and extended families with day-to-day living costs.
“One in five actually help their parents financially. You can see this generation that is getting squeezed from both sides.
“At least one in four want to do more to help their families but when they go to the mainstream banks and financial providers they do not have the products there for them.
“It is that gap that Family Investments plans to fill. We have a very strong range of investment products but over time we will reinvest the profits we make from efficiency gains into new product development into those niches that are not provided for by the major financial providers.”
emma.hughes@ft.com
