Expected to take effect in early 2027 subject to regulatory approval, the unified organisation will oversee nearly £10 billion in assets under management while serving a combined membership of over 2.3 million people.

The merger is a future-focused choice to create a bigger, more impactful mutual, helping families across the UK build financial resilience at a time when traditional safety-nets are under strain. The combined organisation will bring together the mutual heritage and strengths of both OneFamily and Scottish Friendly and with greater scale, will combine strong propositions, data-driven insight, digital capability and high customer service standards to champion members’ interests and redefine what a modern mutual can deliver.

With commitment to a base in both Brighton and Glasgow, the combined organisation will bring together the strengths of both organisations and build on their mutual values and heritage.

Chair of Scottish Friendly John McGuigan said: “This is a powerful opportunity to build long-term value for our members. Joining together with OneFamily will create a strong and future-focused mutual life assurer that will be one of the largest in the UK. It’s an important new chapter that builds on our successful heritage and sets a pathway for sustainable growth.

“Our organisations have a great deal in common, and we share pride in our mutual values. By combining, we will benefit from increased scale that will enable us to maximise our potential and make a difference in the market.

“Our shared values, our members and our colleagues will be at the heart of our thinking as we shape our future plans together.”

Chair of OneFamily Steve Colsell said: “Both our Boards recognise the significant opportunity that this presents for us to accelerate the development of our mutual proposition.

“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.”

The proposal to merge OneFamily and Scottish Friendly presents both organisations with an important opportunity to build long-term value for their members.

Both Boards recognise the strong fit and the potential of combining two already strong mutuals, with similar pride in their heritage and a history of helping customers plan their financial futures. Both organisations are defined by mutual principles and culture and each plays an active role in supporting their communities. This will continue as they join together.

The merger will also enable both to achieve greater scale, in a market where these factors are more important than ever before in ensuring commercial success and sustainable growth.

Both organisations offer a complementary range of protection, long-term savings and ISA investment products and have reinforced good customer service with new technology to enable them to better serve members. The new group will provide a comprehensive platform of investment and protection products to members to help them build a resilient financial future for themselves and their families.

The combined mutual will operate under the group name of OneFamily and the Scottish Friendly brand will remain as part of a multi-brand group alongside the OneFamily and Beagle Street brands.

The combined organisation will bring together the skills and expertise of both workforces and will continue to invest in their Brighton and Glasgow bases. There will be no immediate impact on colleagues.

CEO of OneFamily Jim Islam 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.”

Scottish Friendly CEO Stephen McGee 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.”

John McGuigan, Chair of Scottish Friendly will chair the combined organisation, while Jim Islam, CEO of OneFamily, will be the future CEO. These appointments will take effect when the merger is effective, and are subject to regulatory approval.

The boards of both organisations have agreed the principles of the merger, and a detailed integration plan will be developed and put in place in the months ahead. Further details will be shared in due course.