Sheffield Mutual achieves solid results as investment ISA grows in popularity

Tony Burdin, chief executive of Sheffield Mutual Friendly Society

A Yorkshire-based mutual achieved 'solid' growth over the last financial year, which was largely due to the continuing popularity of its with-profits investment ISA.

In 2017, Sheffield Mutual Friendly Society saw its total assets increase by 22 per cent to £138.4 million while premium income increased by 13 per cent to £19.7 million.

Traditional membership grew by 6 per cent to 11,294 and new policies increased by 4 per cent to 1,996. Including the Child Trust Fund, the society now has 78,317 policies and accounts.

Sheffield Mutual, which is based in Barnsley, was established in 1892 to provide funeral and sickness benefit schemes to its members in times of hardship.

It is a member-owned mutual friendly society and now provides a range of life insurance based, mainly tax exempt, savings and investment plans within a traditional with-profits fund.

The society, which has 12 staff, aims to offer a more personalised service than its competitors.

Tony Burdin, the chief executive, said: “We’ve had a very good year by all key measures and I would like to thank my excellent team of staff for their hard work and dedication.

“It is the friendly, efficient and personalised service they provide, as well as our excellent policy returns, which sets us apart from many of our competitors.”

A spokesman added: “Sheffield Mutual generates investment returns for its policyholders through a diversified with-profits fund, which achieved an excellent investment return of 8.01 per cent in 2017.

“This result, combined with the fact that Sheffield Mutual has no shareholders to pay, enabled the society to distribute annual bonuses to policyholders worth in excess of £1.5 million.”

The spokesman added that the society had strengthened its financial base and the available capital resources of £17.15 million are 163 per cent of the regulatory solvency capital requirement.