Scottish Friendly has announced the highest annual sales in its 164-year history, recording £56.1 million for the year ending 31 December 2025.

The Glasgow-based mutual society reported a significant 60% year-on-year growth in its own-brand Stocks & Shares ISA and Junior ISA products. This performance comes despite a sustained period of high interest rates which has historically pressured the investment market.

Underlining its status as a member-owned organisation, the society distributed £23 million to eligible members during the year. This included £4.9 million shared through the Scottish Friendly ProfitShare scheme for those invested in the Main With-Profits Fund.

Key Financial Metrics

The society’s assets under management rose to £4.4 billion, up from £4.3 billion in 2024, supported by positive market returns and net premium flows. Its capital position remains robust, with a Solvency II Pillar 1 capital ratio of 197%, nearly double the regulatory requirement.

Metric	2025 Performance
Total Sales (APE)	£56.1m
ISA Sales Growth	60%
Member Distributions	£23.0m
Assets Under Management	£4.4bn
Solvency Ratio	197%

Strategic Expansion and Mergers

The 2025 results follow a period of aggressive strategic scaling. During the year, Scottish Friendly agreed to acquire a book of pension and annuity business from FIL Life Insurance Limited, part of the Fidelity International Group. The deal includes a £2.16 billion block of Section 32 pensions, covering approximately 40,000 policyholders. The transfer is expected to conclude in September 2026.

Furthermore, the society has announced a proposed merger with OneFamily. The move aims to create a larger mutual entity with a broader product range, aligning with UK Government ambitions to double the size of the mutual and co-operative sector. Subject to regulatory approval, this merger is slated for early 2027.
Executive Commentary

Stephen McGee

2025 was a landmark year for Scottish Friendly. We delivered record sales, strong growth in our core ISA products and meaningful returns directly to our members - despite a challenging savings environment. Alongside this performance, we’ve taken important strategic steps that will strengthen the society for the long-term and broaden what we can offer members and ensure Scottish Friendly is well positioned for the future.

Alan Rankine, Chief Financial Officer, added: “This has been another year of robust performance, once again demonstrating the resilience and financial strength of the society. Our strong capital position and disciplined approach leave us well placed to continue delivering against our strategic objectives and supporting members and their families over the long term.”

The society also confirmed it is continuing to lobby for reform of Junior ISA rules. It is advocating for changes that would allow grandparents to open accounts directly, a move intended to simplify intergenerational wealth transfers within UK families.