Police Mutual Group, which includes our two brands Police Mutual and Forces Mutual, has seen another year of very strong growth with new business up by an impressive 22% with total income up by 27%.
Stephen Mann refers to our Group performance as benefitting from a “virtuous circle”.
“The stronger our financial performance, the more that can be given back in improving lives for our Police and Military affinities which in turn is leading to higher levels of advocacy which is leading to this strong performance. These are challenging times and supporting our members and customers remains at the heart of everything we do. Our results prove that you can both do the right thing and be a strong performing business.”
The increase in new business mostly came from organic growth (18% year on year) as well as the early results of the enlarged Forces Mutual business (Police Mutual Group merged its existing Forces Financial brand with Abacus Group, which it acquired in April 2016). Member numbers now stand at a record level and strong growth was seen across all product lines.
Financial inclusion – a strong motivator
Equally importantly, the products and services which we offer, reflect our purpose of improving lives and key within this is an objective around financial inclusion. Mann continues “We recognise that it’s a tight environment for our members so our Regular Savings Plans (RSPs), which have no minimum, make saving accessible pretty much to everyone.” Over 3,800 new members started the savings habit, and in total Police Mutual paid out £63.7m on maturing plans.
Money back in members’ pockets
Financial wellbeing is a key indicator of improving lives and to meet this, we continue to deliver savings for our members:
• In 2016, members saved £130 on motor and £123 on home insurance¹
• Police and Military customers made typical savings of £500 on mortgage advice fees
• If Police Officers took out a basket of Police Mutual products they could save an average of £1,674 in 2016²
• 2016 saw the launch of Police Mutual’s new stocks and shares Options ISA with over £43 million invested, including eight fixed-term ISA offers for the Police family
In terms of explaining plans for this year, Mann concludes “Our focus in 2017 will be to continue this momentum. The Group is now a very different business to seven or eight years ago. We have strengthened our operation for the next phase of growth, growth that will continue to enable us to focus on the wellbeing of our Police and Military affinities.”
¹Average premium savings are based on 19% of all car insurance and 14% of all home insurance members who provided their existing premium and switched their insurance (inbound sales only) from June 2015 - May 2016
²Based on an individual in their 30s with a salary of £38,000, holding Police Mutual mortgage, home and motor insurance, healthcare, personal loan and fixed-term-ISA products. Police Mutual data 2016.