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Joint Statement - POLICE MUTUAL AND METROPOLITAN POLICE FRIENDLY SOCIETY to consider merger
The Committee of Management of Police Mutual Assurance Society (Police Mutual) and the Board of Management of Metropolitan Police Friendly Society (MPFS) have agreed to consult with their respective memberships about merging the two Societies. This consultation process will take place during 2009.
The joint vision is to build a stronger, more comprehensive insurance and financial services business aligned to the police service across the whole of the United Kingdom.
The combined operation would have 225,000 members and customers, over £1bn funds under management and new business premium income of £22m. Its reach would expand to all serving police officers and their families, support staff, close family and those who have retired from the police service.
The two mutual Friendly Societies share a common purpose: both were established by the police to provide value-for-money products, an efficient service and to enhance the financial well-being of the police. They are already looking to collaborate on a number of initiatives designed to improve their respective offerings – such as the provision of general insurance.
Police Mutual and MPFS also share core values that include having members’ interests at heart and actively seeking member involvement in decision-making. This member involvement means the proposed merger will be considered by both MPFS’s membership and Police Mutual’s member representatives (drawn from a network of 1,000 serving and retired police officers and police staff) during the consultation period.
Subject to members agreeing the proposal and the Financial Services Authority’s approval for it to proceed, Police Mutual’s chief executive would become chief executive of the enlarged Society and MPFS’s chief executive would become deputy chief executive so as to provide valuable continuity for the members and employees of MPFS.
Stuart Bell, chief executive of MPFS, said:
“This is an extremely positive development. Given the similarities in the way the two Societies operate, the product offering and the member base, it is perhaps inevitable we should have looked to merge the two Societies at some point.
“As Police Mutual continues to increase its customer base and expand its reach, an ever increasing number of its customers are drawn from our operating area - the Metropolitan and City of London Police Services. So it makes sense to now combine forces to provide a stronger, more comprehensive insurance and financial services business by bringing together the best of both.”
Mike Urmston, acting chief executive of Police Mutual, continued:
“The interests of our members, customers and staff are foremost in our decision-making. As mutual Societies we are determined to do the right thing for members, customers and the wider police service. As responsible employers we are also committed to do the right thing for employees and we will look to reassure those whose roles may be affected.”
In a joint statement John Giffard, chairman of Police Mutual, and Mick Messinger, chairman of MPFS, said:
“Strategically, this is an opportunity to bring together two very successful, financially strong organisations to create an enlarged Society that is even better placed to serve the police service.
“The combined operation would build on the existing strengths of mutuality, excellent customer service, a low cost base and a strong relationship with the police service – in particular, the special relationship MPFS has with the Metropolitan and the City of London Police Services.
“It would give economies of scale, increased buying power and help us better manage the day to day issues of operating within the same marketplace.”
During the consultation period it is ‘business as usual’ for both Societies and their customers. Customers can continue to contact Police Mutual and MPFS and apply for products and services as usual.
