Friendly societies Engage Mutual and Family Investments are set to merge

Two friendly societies are set to tie up to create a mutual insurer with 2 million customers. Engage Mutual plans to merge with Family Investments to form an organisation with around £6bn in assets under management.

The Engage chair Christina McComb will become chair of the joint organisation, while Family Investments' chief, Simon Markey, will become chief executive. Ms McComb said: "Combining our businesses will demonstrate the value of the mutual model."

The deal will only go ahead if the customers of both Engage and Family agree to the merger when it is put to a vote. They are both mutual organisations, which means they are owned by their customers.

Details and voting packs for the proposed merger will be sent to members by 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.