Savings companies Scottish Friendly and OneFamily have announced proposals to merge, creating a mutual with almost £10 billion in assets under management and more than 2.3 million members.
It will operate under the group name of OneFamily and the historic Scottish Friendly brand will become part of a multi-brand group alongside the OneFamily and Beagle Street brands.
The combined organisation will bring together both workforces and will continue to invest in their Brighton and Glasgow bases, with no immediate impact on employees.
Scottish Friendly was founded in Glasgow in 1862 as the City of Glasgow Friendly Society and employs about 350 staff.
It has more than 850,000 members across the UK and £4.2bn in assets under management. Scottish Friendly offers ISAs, junior ISAs and over 50s protection products as well as protection products distributed via third parties.
OneFamily formed from a merger of Family Investments and Engage Mutual in 2014 and has roots going back over 50 years. It employs around 400 colleagues mainly in its Brighton office.
It has around 1.5 million members and £5.7bn assets under management. In 2022, it acquired Beagle Street, which offers a range of protection products such as life assurance and critical illness cover direct to customers and via financial advisers.
John McGuigan, chair of Scottish Friendly, will chair the combined organisation, while Jim Islam, CEO of OneFamily, will be the future CEO.
The merger is expected to be effective from early 2027 and the proposal will be subject to regulatory approval.
Mr McGuigan said: “This is a powerful opportunity to build long-term value for our members. Joining together with OneFamily will create a strong and future-focused mutual life assurer that will be one of the largest in the UK. It’s an important new chapter that builds on our successful heritage and sets a pathway for sustainable growth.”
Chair of OneFamily, Steve Colsell, said: “Both our boards recognise the significant opportunity that this presents for us to accelerate the development of our mutual proposition.
“OneFamily has taken some bold steps to progress in recent years, investing in technology and modernisation, and extending the range of products we can offer customers.
“Joining together with Scottish Friendly is the next step forwards on that journey. We are delighted to have reached this agreement together and are excited to see our plans take shape.”
Mr Islam added: “There is a great deal of commitment from the UK and Scottish Governments in encouraging the growth of the mutual sector, and we see many consumers choosing purpose-led organisations that focus on creating value for members. That’s what sets mutuals apart. Our proposal will mean we will be better placed to maximise this opportunity.”
Scottish Friendly CEO, Stephen McGee, said: “A merger with OneFamily joins two organisations built on common values, organisations that put customers at the heart of everything we do and who care deeply about their colleagues and their communities.
“By combining and leveraging our respective strengths, we can build on what we have already achieved and accelerate the delivery of our vision.
“Together, we have a significant opportunity to create even greater value for our members, both today and in the future.”
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