Mutual posts record sales in 2017 and hails bright outlook

● Scottish Friendly sees full-year sales increase by 32% ● Continuing to seek opportunities amid uncertainty

Scotland’s largest financial mutual Scottish Friendly is “positive” about its outlook for this year after reporting record sales in 2017.

The firm, which is based in Glasgow’s Blythswood Square and can trace its roots back to 1862, said revenue amounted to £44.8 million last year, a year-on-year jump of about a third. The increase was mainly attributed to better sales of protection products as well as higher demand for investment ISAS from its direct marketing operation.

Protection sales jumped by half to £32.3m on Scottish Friendly’s business partnerships with brands such as Beagle Street, Smart Insurance, and Union Insurance.

Investment sales in 2017 overall were “similar” to 2016, and while there was lower demand from its business partners, investment sales from Scottish Friendly’s own brand distribution grew by 38 per cent to £10.1m.

Chief executive Jim Galbraith, said 2017 “has been another tremendous year for Scottish Friendly, demonstrating the progress that a wellrun mutual can make”.

He added: “Our strong sales have largely been led by working with key distribution partners and this is likely to continue as a growth area for us. The My ISA platform proposition developed in 2012 for our customers and business partners has also attracted healthy sales growth from our own brand channel and we will add to this product suite in 2018.”

Galbraith also addressed the firm’s outlook, stating: “As we approach a critical stage in Brexit negotiations and with inflation causing UK households to be economically stretched, there is considerable uncertainty ahead.

“We are nonetheless positive about the prospects for 2018 during which we will carry on seeking out opportunities that will benefit our members and our partners.”

Scottish Friendly provides investors and their families with investment and protection options, as well as life and investment products and services to other financial organisations.

The firm started as the City of Glasgow Friendly Society, with its name changed in 1992 when it took over Scottish Friendly Assurance.

It has “significantly” restructured its business in recent years, with an expansion strategy including mergers and acquisitions.

In 2007 it took over Scottish Legal Life, while in 2015 it acquired Marine & General Mutual, doubling Scottish Friendly’s assets under management. Babcock International, the defence supplier behind the Rosyth yard where two giant aircraft carriers have been assembled, has cautioned over its full-year sales, amid ongoing tough trading in the oil and gas sector and a slowdown in the market for defence contracts. The Ministry of Defence’s largest contractor said it now expected full-year revenues to be “slightly” lower than expected, at between £5.3 billion and £5.4bn for the year – which is still 2-3 per cent up on 2017.