Combined, they will have nearly £10bn assets under management and more than 2.3 million members across the UK.
The merger is expected to be effective from early 2027 and is subject to the necessary approvals.
Bringing the organisations together is expected to build on the strengths of OneFamily and Scottish Friendly regarding their propositions, data-driven insight, digital capability and customer services.
The organisations intend to have a base in both Brighton and Glasgow, with plans to scale. They will operate under the group name of OneFamily and the Scottish Friendly brand will remain, alongside the group’s OneFamily and Beagle Street brands.
There will be no immediate impact on colleagues.
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John McGuigan, chair of Scottish Friendly, said this was a “powerful opportunity” to build long-term value for members, and Steve Colsell, chair of OneFamily, said it would accelerate the development of its mutual proposition.
Colsell added: “OneFamily has taken some bold steps to progress in recent years, investing in technology and modernisation, and extending the range of products we can offer customers. Joining together with Scottish Friendly is the next step forwards on that journey. We are delighted to have reached this agreement together and are excited to see our plans take shape.”
An exciting prospect
Jim Islam, CEO of OneFamily, said: “Bringing together these two successful mutuals is an exciting prospect. I am inspired by the potential to pool our strengths and capabilities. Together, we will offer a comprehensive investment and protection platform that will support today’s families as they build their financial futures.
“This is an important moment to build a stronger and more sustainable mutual. There is a great deal of commitment from the UK and Scottish governments in encouraging the growth of the mutual sector, and we see many consumers choosing purpose-led organisations that focus on creating value for members. That’s what sets mutuals apart. Our proposal will mean we will be better placed to maximise this opportunity.”
McGuigan will chair the combined organisation, and Islam will serve as the CEO.
Stephen McGee, Scottish Friendly’s CEO, said: “A merger with OneFamily joins two organisations built on common values, organisations that put customers at the heart of everything we do and who care deeply about their colleagues and their communities.
“By combining and leveraging our respective strengths, we can build on what we have already achieved and accelerate the delivery of our vision.
“Together, we have a significant opportunity to create even greater value for our members, both today and in the future.”
