Andrew Haigh

1
Andrew Haigh

• Chief Executive, engage Mutual
• and
• Chair, AFS Policy and External Affairs Committee

2
Are consumers paying the price of demutualisation?
3
The simplicity and opportunity of being a
customer-owned business
4
Old roots and new routes

• Friendly societies were established in 19th
  century, to encourage self-help and personal
  responsibility and to enable people with limited
  financial resources to improve their economic
  status
• Meeting challenges that are just as relevant in
  21st century

5
About AFS and its members

• Friendly society membership growing and now close
  to 6 million people
• With approaching 18 billion assets under
  management
• Around 50 members, many focused on local
  communities or affinity groups

6
About AFS and its members

• Friendly society membership growing and now close
  to 6 million people
• With approaching 18 billion assets under
  management
• Around 50 members, many focused on local
  communities or affinity groups

7
Child Trust Fund

• By the end of 2007, friendly societies managed
  around 1.5 million CTFs
• Nearly 40 have topped up their CTF

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Child Trust Fund

• Banks and large insurers shunned CTF due to
• narrow margins and low profit potential

Friendly Societies 56 of CTF market (to end 2007)
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Child Trust Fund
Mutual Sector 92 of CTF market (to end 2007)
10
Income Protection/ Holloway

• Holloway income protection - targeted at low paid
  and self-employed
• New policies in 2007 up 38, against wider market
  which reduced 14

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Income Protection/ Holloway

• First sector to publish claims statistics
• 94 of all claims submitted were subsequently
  paid in 2007
• AFS data collated from the 10 Holloway Societies

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Tax Exempt Savings PlansGreater reach into the
less affluent
Proportion of TESP holdings by customer type
compared to PEP/ ISA
Source Thring Townsend and Mazars using CACI
analysis compared against AFS research
13
Product Performance

• 50 per month invested over 10 years

14
Financial education

• Working to improve financial education and in
  financial inclusion
• Ed Balls at the AFS conference 2007

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Financial education

• Working to improve financial education and in
  financial inclusion

Police Mutual launch initiative to work with FSA
to deliver financial capability CDs to Police
Officers
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How much more could be achieved by working with
customer-owned businesses?
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Thanks for listening

• Contact information
• 0161 952 5083
• info_at_afs.org.uk
• www.afs.org.uk