Scottish Friendly has doubled its year-on-year sales in the first quarter of 2013, following a 35% rise in 2012, on the back of growing online business, further distribution tie-ups and new products.
Scotland's only surviving mutual life office, headed by Fiona McBain, reported core life and pension sales of £8.5 million in 2012, based on the industry standard, which adds in 10% of single premium business to regular premiums. That was more than one-third up on the £6.3m in 2012, while funds under management grew more modestly by £27m to £924m, a rise of 3%.
The Glasgow-based insurer said there were "no signs of losing momentum in 2013 with sales to April 1 up 106% on the same period in 2012".
The group secured two new partnerships last year, with Beagle Street, part of the group behind comparethemarket.com, and Neilson Financial Services, under its Smart Insurance brand. The Glasgow mutual enabled them to bring innovative life assurance and critical illness products to the market, and gave Scottish Friendly its first foothold in the protection market.
Neil Lovatt, sales and marketing manager, said: "Adding this into the mix has really helped, in diversifying the product range and growing new business." He added: "We are also doing really well on e-business, and the switch away from tax-exempt savings products towards Isas is also helping to make a difference."
The group said it had achieved record e-business sales of £630,000 in March, reflecting its drive to attract online customers in a new market. Last December it launched a My Isa platform, which it says offers "a flexible and accessible approach to Isa investment, designed to appeal to a broad market". Mr Lovatt said the mutual was developing "a whole series of new products" and would unveil new partners in the protection market over the course of 2013.
The mutual sold its rapidly-developed wrap platform administration business to Citigroup, transferring 134 staff in Glasgow, at the end of 2011 and banked more than £20m from the deal. The exit meant total sales last year fell 13% to £13m.
Ms McBain's remuneration rose 6% to £469,000.
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