Broadstone has published its latest report analysing publicly available data contained in the Solvency and Financial Condition Reports (SFCRs) published by Association of Financial Mutuals (AFM) members as well as other firms of a similar nature and size.
The analysis finds that most participants reported an increase in assets over 2025. The four largest participants reported an average asset increase of 5%, marking a significant improvement on last year, when the same group recorded an average decrease of 2%.
The remaining participants recorded an average increase of 5%, compared with an average increase of 1% last year. Overall, fewer firms reported declining assets this year: total assets fell for five participants compared with twelve participants last year.
Most participants reported an increase in Gross Written Premiums (GWP) compared to last year with the median increasing from £37m to £39m. The average Gross Written Premium rose by 6% for the top 4 and by 13% across the other participants, with 11 participants recording growth in excess of 10%.
Gross claims increased for most participants with the median gross claims incurred rising significantly to £37m (2024: £31m). Claims in excess of premiums can indicate challenges for growth however it may also relate to long term business from prior years and are supported by historical investment returns for savings and investment providers.
The findings of the Report highlight the value mutuals bring and the direction of travel towards proportionate supervision, lower burden and better support for growth amid the Government’s ambition to double the size of the mutual and co-operative sector.
Ewen Tweedie, Actuarial Director in Broadstone’s Insurance Advisory & Remediation division, commented: “Our analysis shows the mutual sector is well placed to keep supporting its members and has the financial strength to help deliver the government’s ambitions.
“Across the market, momentum was evident in 2025 with firms focused on supporting members through higher claims activity whilst benefiting from broadly positive Investment performance. Equities performed strongly, while fixed income delivered mixed results depending on duration.
“Looking ahead to the coming year, there may be some turbulence due to factors ranging from political instability within the UK to geopolitical tensions driving increased cost of living pressures.
“Mental health is having a growing impact on individuals and workplaces, underlining the importance of prevention, early intervention and staying connected to work. Mutuals have an important role to play in supporting members and communities through these challenges.”
A full copy of Broadstone’s report UK Insurance Landscape: Insights from mutuals can be downloaded here: https://broadstone.co.uk/resource-library/
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