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December 2010

Engage Mutual Consolidates Health Presence

Engage Mutual has acquired Provincial Hospital Services Association (PHSA), a not for profit healthcare provider specialising in health cash plans and private medical insurance, based in Bedford.

Engage Mutual entered the health cash plan market in 2008 following an agreement of partnership with Wakefield & District Hospital’s Contributory Scheme.  The acquisition of PHSA, part of a strategy to consolidate its healthcare presence, will enhance economies of scale within the mutual’s health cash plan business, and add 13,000 new customers.

Both Engage Mutual and PHSA share ethical values and a commitment to customer service.  PHSA was the first insurance company in the UK to receive the Ethics Mark in recognition of its fair business conduct.

Engage Mutual’s chief executive, Andrew Haigh, commented:

“We welcome PHSA customers and staff to an established and growing organisation which has a dedicated customer centric approach they will no doubt be familiar with, and we look forward to continuing with the same high standards.  ”

“The acquisition of PHSA is another milestone in our progress as a customer-owned business to increase our presence in the healthcare market, which is part of a larger long term strategy to offer a comprehensive range of simple, relevant products to assist families with their financial planning.”

Engage Mutual provides life insurance, savings and investments, and health cash plans.  Customer numbers at the mutual have increased for each of the past 12 consecutive years and following the acquisition of PHSA now number 457,000.

INSURANCE BUSINESS TRANSFERS TO ENGAGE MUTUAL

Part of Ecclesiastical Life Limited’s long term insurance business has been successfully transferred to one of the UK’s largest mutual friendly societies, Engage Mutual.

The transfer adds over 15,000 new members and more than 25,000 new policies to the Mutual, which has its headquarters in Yorkshire.  Assets under management have increased by £270 million, bringing total assets managed by the Engage Mutual Group to around £900 million.

The transferred business, which includes both with profits and non profit business, pensions, endowment savings and traditional life assurance, brings product diversification and economies of scale to the Engage Mutual Group.

The transfer followed an extensive strategic project undertaken by Ecclesiastical Group to review its existing life business.  Engage Mutual was carefully selected from  a group of potential buyers, due to the similarity of its customer-focused approach.

Recognising the expertise and commitment of current staff, transferred policies will continue to be serviced from a Gloucester base with corporate functions provided by Engage Mutual’s Yorkshire headquarters.  The transferred with profits fund has been closed to new business and will run on a segregated basis for its members’ benefit.  The non profit fund will become part of the Engage Mutual non profit fund.

Engage Mutual’s chief executive, Andrew Haigh commented:

“This is an important strategic step for Engage Mutual, bringing additional financial strength and scale to our organisation which is in the interests of both members and future customers.

“As a customer owned organisation, we continue to offer a real alternative for families seeking good value financial products, and in doing so, we contribute to a more diverse financial industry, which is to the benefit of all.”

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