Sheffield Mutual adds more customers in the rush for a safe financial haven

One hundred and twenty years later, Sheffield Mutual Friendly Society has secured record new business levels, despite the uncertainty caused by the economic crisis in Europe. Tony Burdin, the chief executive, said more people had decided to become members of mutuals since the banking crisis. The society’s traditional premium income rose by 28 per cent to £3.47m last year, while membership grew by seven per cent to 7,424. Investment income increased by 19 per cent to £1.51m, while operating costs were £732,584, compared with £734,768 recorded the year before.

The society’s available capital is £4.3m, which is more than three and a half times the minimum regulatory margin.

The society also added 19,354 Child Trust Fund (CTF) accounts, which helped to boost the society’s assets by 22 per cent to a record £47.9m. Excluding the CTF, the society’s assets increased by six per cent to £28.5m.

Mr Burdin said yesterday: “We are very pleased with the new business figures, which reflect an increase in support from financial advisers together with improved sales from our direct channels, such as the internet.

“Although investment markets remained volatile, the underlying strength of our performance enabled us to declare competitive annual bonuses and we have maintained our position as the top and most consistent product provider in the UK for with-profits endowment savings plans.

“The society has a number of exciting plans for 2012, which will include the launch of a new website with online policy applications and the introduction of a new whole of life plan, Sheffield Protect.”

The mutual has eight staff, and Mr Burdin said it was hoped that more staff could be hired in the medium term. He added: “Not all friendly societies are financially strong and expanding.”

Mr Burdin said the society had achieved its highest membership figure in “modern times”. In the early 1900s, Sheffield Mutual had around 50,000 members.