Cirencester Friendly pays 95.7% of 2019 claims
Membership increased to over 42,000
Solvency and liquidity ‘remain strong’ and within board risk tolerances, balance sheet shows
Cirencester Friendly has reported that its membership increased to over 42,000 and premium income rose from £18.2m in 2018 to £19.9m in 2019, an increase of 9.1%.
The mutual said 49% of this premium income was returned to members through claims, bonuses, interest and other benefits. Total funds reached £153.8m - a 6.3% increase on 2018 - it paid 95.7% of all claims last year.
Paul Hudson, chief executive at Cirencester Friendly said: "I am pleased to report that premium income, membership and funds under management have all increased in what was a very successful year for Cirencester Friendly, a year in which we also relocated to a new purpose-built head office.
"We are proud to provide exceptional support to our members and advisers, through our high claims paid ratio, bonuses and growing additional benefits including children's critical illness Support."
Last year, the mutual introduced children's critical illness support benefit, which provides a lump sum of £2,500, if a member's child is diagnosed with one of 10 listed critical illnesses.
Cirencester Friendly also confirmed that a post-balance sheet review, which included running stressed scenarios, showed that both its solvency and liquidity remain strong and within board risk tolerances in the face of coronavirus impact.
Hudson added: "The excellent results are a testament to the exceptional support from financial advisers, backed by the hard work of the Society's employees.
"In what has been a quite extraordinary start to the year, the Society remains in a very strong position both financially and operationally to support our members and the independent financial advisers we work alongside. With the wonderful commitment and dedication of the Society's employees, I am confident we can maintain our servicing levels and be there for our Members when they need us most."
Andy Morris, finance director at Cirencester Friendly said: "2019 represented a record year for the Society, in terms of business growth, balance sheet stability and membership. In these challenging times, it is reassuring to know that the enhanced financial strength and resilience of the Society means we can be there to support our members now and long into the future. I am very proud to be able to present these results to our loyal members and committed staff."
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