Engage Mutual progressing despite another tough year

The Harrogate, North Yorkshire-based mutual, said customer numbers grew eight per cent to more than 500,000, its 14th year of growth.

However, Engage saw its group financial investments fall almost eight per cent to about £673m in 2011 from £731m a year earlier, including a big fall in share values.

Chairman David Robinson said generating good returns is proving “far from easy in times of low interest rates and turbulent markets”.

“Volatility, unstable markets and challenging trading conditions are becoming the norm rather than the exception these days,” he said in the mutual’s annual report.

“After a promising start, 2011 proved to be every bit as difficult as the preceding year but your society continued to make sound progress despite that backdrop.”

Engage’s group assets fell three per cent to £919m, which also reflected increased maturities paid to customers.

“Last year, we were able to make some modest improvements to the returns for customers with deposit-based policies,” said Mr Robinson. “However, the fall in markets last year meant that those with policies supported by equity investments saw some decline in the period.”

He added: “We expect economic conditions will continue to be tough during 2013.”

Engage acquired Ecclesiastical Life Limited and the Provincial Hospital Services Association in 2010. Their Gloucester and Bedford offices have now been merged into the customer-owned group’s head office.

These acquisitions boosted the size of its business, said Engage, adding customers, revenues and assets.

Gross premium income from customers rose six per cent to £64.1m, driven by strong growth in health and life insurance.

Chief executive Andrew Haigh said Engage is in a “great position to meet the needs of more people moving forward”.

The company said it has a new mission statement: “Helping people help each other live the second half of their lives”.

Mr Haigh said Britain’s aging population and creaking welfare state make Engage increasingly relevant to its customers’ lives.

The company said both of its with-profits funds are well capitalised.

One is closed and Engage said it will pay out a proportion of the surplus to members to improve future payouts.

[email protected]