- Government’s aim to double the size of the mutual and co-operative market presents significant opportunities for financial mutuals
- Gross Written Premium for participants rose to £116m on average (2023: £105m) but Gross Claims Incurred also increased to £149m on average (2023: £137m) in growth challenge for mutual sector
Broadstone’s 2024 Solvency and Financial Condition Report (SFCR) Analysis finds a mutual and co-operative sector that is financially resilient with growing assets and Own Funds enabling it to serve its membership.
The findings of the Report are based on Broadstone’s analysis of information contained in the publicly available SFCRs published in 2025, which refer to the year-end 2024. The Report includes 28 insurers, with total assets of £34bn, the majority being members of the Association of Financial Mutuals (“AFM”).
The Report reveals that the majority (57%) of mutuals recorded increases in total assets through 2024, with Shepherds Friendly recording the largest increase (19%) due to new business and positive investment income.
The mutuals in the study also recorded an increase in Own Funds rising from £143m on average in 2023 to £149m in 2024.
The average Gross Written Premium increased by 10% to £116m (2023: £105m) and the median value is £36m (2023: £31m). Nearly all mutuals in the analysis have increased Gross Written Premium since 2023.
The average Gross Claims Incurred is £149m (2023: £137m), a rise of 8%, and the median value is £31m (2023: £25m).
Whilst this is an increase, the payment of claims is positive for customers, with most participants reporting pay out rates in excess of 90% on their insurance products. Claims in excess of premiums can indicate challenges for growth however it may also relate to long term business from prior years, supported by historical investment returns.
Ewen Tweedie, Actuarial Director at Broadstone, commented: “In 2024, insurers faced several challenges, including political shifts in the UK and US that impacted markets, along with ongoing issues such as persistent cost of living pressures.
“Regulatory change also continued, with this reporting cycle marking the first use of updated templates under the Solvency UK regime. Further regulatory developments are anticipated, including the review of the Friendly Societies Act later this year and the implementation of solvent exit planning in 2026.
“On a positive note, the Government’s initiative to double the mutual and co-operative market, alongside the commissioning of reports from both the PRA and FCA as to how best they could support this growth, presents significant opportunities for financial mutuals.
“Our analysis shows the sector is well positioned, with the financial strength to continue to serve its membership and the potential to deliver on the government’s ambitions.”
You can find a full copy of the 2024 Solvency and Financial Condition Report here.
ENDS
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About the Broadstone Group
Broadstone is a leading, independent UK consultancy delivering expert advice to employers, insurers, pension scheme trustees and lenders.
For over 40 years, Broadstone has been providing its clients with a wide range of specialist services including:
- Employee Benefits Consulting
- Pensions Administration and Actuarial services
- Investment Consulting
- Insurance Consulting across life, non-life, and the Lloyd’s and London markets.
- Credit risk services
- Financial modelling and data analytics
- Redress calculation services
Broadstone’s team comprises over 750 expert consultants and administrators, including more than 85 actuaries, across thirteen UK offices.
