Sheffield Mutual announces growth in key areas
Posted on March 26, 2019
We have today announced our financial results for 2018, with the main highlights being the growth in assets of 4% and a 3% growth in membership - largely due to the continued popularity of our with-profits Investment ISA and regular premium plans.
2018 Business & Financial Highlights:
- Total assets increased by 4% to £144.3 million (2017: £138.4 million)
- Traditional membership grew by 3% to 11,635 (2017: 11,294)
- Total number of traditional policies increased by 5% to 15,604 (2017: 14,837)
- Including the Child Trust Fund the Society now has 78,953 policies and accounts
The Society has retained a strong financial base with available capital resources of £14.8 million, which are the surplus assets in excess of capital reserves. We have also maintained healthy solvency coverage at 152% of the regulatory solvency capital requirement.
Due to a slump in global investment markets during the final quarter of the year, our with-profits fund generated an overall investment return of -0.47%. The Society’s property portfolio performed strongly however, delivering a respectable 6% return, offsetting some of the unrealised losses on equities. Despite a less favourable year for our investment portfolio, through the process of smoothing we are able to rely on previous years’ excellent returns (2017: 8.01%, 2016: 7.22%) to maintain competitive annual bonus rates for all policies and terminal (final) bonuses for applicable policies.
Commenting on the results, Jamie Bellamy, Chief Executive, said: "The Society has continued to grow organically whilst maintaining highly competitive rates, despite a backdrop of investment and economic uncertainty. We believe that due to our mutual ethos we’re trusted by our members to continue to offer stability and excellent member service standards.”