Engage’s new chief to reach out to the customer

Peter Burrows who was announced as the new head of the Harrogate-based company today, said the mutual was about to enter a period of consultation with customers about how to invest some of its capital in the wider community.

“There is a real opportunity for the mutual business model at the moment, and the organisations that succeed will be those that connect with the wider needs of their customers,” he said.

As part of this, the company is making six £5,000 grants available to projects voted on by its members through its Engage With Your Community scheme, which is now in its second year. Last year, the company gave out three grants.

Mr Burrows, 44, said: “Engage Mutual faces the same fundamental issues as others in the sector: the economy is fragile, trust in financial services providers is low, and, quite simply, the products that have been provided to customers in the past will not be enough to meet their needs in the future.

“Where I believe we differ, however, is that we recognise the need to reinvigorate ourselves to address changing customer needs.

“Every decision we take is in the best interests of our customers. It’s our customers’ money and as a well-capitalised business we can begin to act more ambitiously, making additional wider benefits available to customers and the communities in which they live.”

Engage provides life insurance, health and savings products to half a million customers.

Mr Burrows, who joined the company in 2010 as finance director, has been acting chief executive following the departure of Andrew Haigh last year.

The decision to make his position permanent was made by the board of directors following an extensive external selection process to identify the best candidate to lead Engage Mutual.

In 2011, Mr Haigh received a salary of £306,000 including a performance-related bonus. Mr Burrows’ pay was £197,000 in 2012 and 2011 but he said he expects his salary to get ‘close to £300,000’ following his promotion this year, if he achieves his bonus.

Chairman David Robinson, who led the selection board, said: “Pete combines a thorough understanding of the business with a strong mutual ethos, both of which he has already demonstrated as acting chief executive since the turn of the year.

“Importantly, he also has the drive and ambition to grow Engage Mutual as a successful, sustainable, customer-owned organisation.”

Mr Burrows added: “I am thrilled to be given the opportunity to take on the leadership of Engage Mutual at such a pivotal time.”

Engage, which is due to release its half-year figures soon, grew its sales by 14 per cent in 2012, with new business annual premium income rising to £5.3m. Within that total, sales of its over 50s life insurance product grew 50 per cent to £3.2m, while sales in its fledgling health business grew 36 per cent to £600,000.

After a year of stabilisation in 2012 following a period of rapid expansion through acquisition, Mr Burrows said Engage was again open to merger and acquisition opportunities.

“Our guiding principle is ‘does it create value for our members?’” he said. “Any opportunities will be subject to a very strong test.”

He added: “Things are beginning to cross my desk but it’s too early to say anything at this stage.”

While some areas of the business are dwindling, such as child trust funds due to the Government’s closure of the scheme, other areas, such as life insurance and health insurance are grow-ing.

Mr Burrows said: “The headline numbers in the accounts might not tell the full story in that respect.

“Parts of the company are growing nicely while other parts are declining. But we are in the process of carefully reinvigorating the business.”

A qualified chartered accountant, Mr Burrows has more than 20 years’ business exper- ience.

He previously worked for Aviva where he held a range of senior management roles in both the UK and Europe.

Before that, he worked for Ernst & Young in London and Leeds, where he advised financial services businesses on financial, risk management and governance matters.

He lives in Thirsk, North Yorkshire, with his wife, Lynne, and two daughters, Ximena and Eulalie.

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