Sheffield Mutual assets top £100m for first time

Sheffield Mutual CEO Tony Burdin

Sheffield Mutual Friendly Society said on Monday its assets rose 26% in 2016 to more than £100 million for the first time in the society’s 125 year history.

The society also recorded a 34% increase in premium income, largely due to its Investment ISA.

Barnsley-based Sheffield Mutual said that in 2016:

  • Total assets increased 26% to £113.8 million
  • New policies increased 10% to 1,915
  • Premium income increased 34% to £17.5 million
  • Membership grew 7% to 10,678
  • Including the Child Trust Fund, the Society now has 77,266 policies and accounts

“Sheffield Mutual generates investment returns for its policyholders through a diversified with-profits fund, which achieved an excellent investment return of 7.22%,” said the society.

“This result, combined with the fact that Sheffield Mutual has no shareholders to pay, enabled the society to distribute annual bonuses to policyholders worth around £1.5 million (£1.2 million in 2015).

“This included a bonus rate of 4.75% before charges on the Society’s Investment ISA, which compared very favourably with Cash ISA returns.”

The society said it maintained a strong financial base with a surplus of £15.04 million.

Sheffield Mutual CEO Tony Burdin said: “It is very timely to achieve the £100 million milestone in our 125th year.

“Our assets were just £20 million in 2006, so it demonstrates clearly the society’s impressive growth and development over the past decade.

“We expect another good year of growth in 2017, especially as the ISA allowance is increasing to £20,000 per individual for the 2017-18 tax-year.”