Glasgow-based Scottish Friendly, which said in February it will merge with Brighton-based OneFamily, has announced record overall sales of £56.1 million for the year ended December 31, 2025.
The mutual also reported 60% year-on-year growth in its Stocks & Shares ISA and Junior ISA products, underlining strong momentum despite a prolonged period of higher interest rates.
In member distributions, £23 million of profits were distributed to eligible Scottish Friendly members and £4.9 million shared with those invested in the main with-profits fund through the Scottish Friendly ProfitShare scheme.
Scottish Friendly CEO Stephen McGee said: “2025 was a landmark year for Scottish Friendly. We delivered record sales, strong growth in our core ISA products and meaningful returns directly to our members – despite a challenging savings environment.
“Alongside this performance, we’ve taken important strategic steps that will strengthen the society for the long-term and broaden what we can offer members and ensure Scottish Friendly is well positioned for the future.”
Scottish Friendly chief financial officer Alan Rankine said: “This has been another year of robust performance, once again demonstrating the resilience and financial strength of the society.
“Our strong capital position and disciplined approach leave us well placed to continue delivering against our strategic objectives and supporting members and their families over the long term.”
In February, the boards of Brighton-based OneFamily and Glasgow-based Scottish Friendly announced proposals to merge, bringing together the two mutual life assurance providers to create one of the UK’s largest mutuals.
John McGuigan, chair of Scottish Friendly, will chair the combined organisation, while Jim Islam, CEO of OneFamily, will be the future CEO.
The combined mutual will operate under the group name of OneFamily and the Scottish Friendly brand will remain as part of a multi-brand group alongside the OneFamily and Beagle Street brands.
The combined mutual will have almost £10 billion assets under management and serve over 2.3 million members across the UK.
The merger is expected to be effective from early 2027. The proposal will be subject to all necessary approvals, including regulatory approval.