ICMIF member OneFamily (UK) has announced plans to merge with fellow UK mutual Scottish Friendly in a move that would create one of the country’s largest mutual life assurers, serving more than 2.3 million members and managing almost GBP 10 billion in assets.
The Boards of both organisations say they have agreed the principles of a merger, which they describe as a “future-focused choice” designed to create a bigger, more impactful mutual at a time when traditional financial safety nets for families are under increasing pressure. Subject to regulatory and other necessary approvals, the combined organisation is expected to be in place from early 2027.
Under the proposal, the enlarged group would operate under the OneFamily group name, while retaining the Scottish Friendly, OneFamily and Beagle Street brands in a multi-brand structure. The organisations have also committed to maintaining and investing in their existing bases in Brighton and Glasgow, with no immediate impact on colleagues.
The two mutuals say the combination would allow them to bring together complementary strengths – including data capabilities, digital innovation, customer service and product expertise – to deliver a broader range of investment and protection solutions for members and to strengthen their ability to compete and grow in the UK market.
Setting out OneFamily’s perspective on the deal, Chair 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.”
OneFamily CEO Jim Islam also welcomed the proposal, highlighting both its strategic and sector-wide significance: “Bringing together these two successful mutuals is an exciting prospect. I am inspired by the potential to pool our strengths and capabilities. Together we will offer a comprehensive investment and protection platform that will support today’s families as they build their financial futures.
“This is an important moment to build a stronger and more sustainable mutual. 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.”
From Scottish Friendly’s perspective, Chair John McGuigan said the merger represented a major opportunity to build long-term value: “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.
“Our organisations have a great deal in common, and we share pride in our mutual values. By combining, we will benefit from increased scale that will enable us to maximise our potential and make a difference in the market.”
Scottish Friendly CEO Stephen McGee added: “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.”
If approved, Scottish Friendly Chair John McGuigan would chair the combined organisation, while OneFamily’s Jim Islam would become CEO. A detailed integration plan will now be developed ahead of the targeted early-2027 completion date.
