Two friendly societies are set to merge to create a mutual insurer with 2m customers. Engage Mutual plans to merge with Family Investments to form an organisation with around £6 billion assets under management.
Engage chair Christina McComb will become chair of the joint organisation while Family’s chief Simon Markey, will become chief executive.
Ms McComb said: “To join forces with Family would be in the long term best interests of our members. Combining our businesses would demonstrate the value of the mutual model.”
Mr Markey: “This is about two strong mutuals joining forces to create a bigger, more effective business, delivering greater value and long term benefits for our members and communities.”
Engage said it has ensured that should the merger go ahead, the future of the Engage Foundation, its £1m customer benefit fund, would continue. The merged business intends to commit £5m over the next five years.
The deal will only go head once the customers of both Engage and Family agree to the merger when it is put to a vote and it has received regulatory approval. They are both mutual organisations which means they are owned by their customers.
Details and voting packs on the proposed merger will be sent to members from both Family Investments and Engage later this year with the result announced on both organisations’ websites.
The merger requires the approval of 75 per cent of voting members from both friendly societies. It is expected that the merger will conclude in the first half of 2015.Reuse content