Engage Mutual has announced that its Board has made a formal recommendation to merge with Family Investments to form one of the UK's largest mutual insurers with over 2 million customers.
As a customer owned organisation, Engage will write to members and ask them to consider and vote on the proposed merger in the coming weeks.
Together, Engage and Family would have approximately £6 billion assets under management, with members of both boards and executive teams represented in the new organisation.
It is expected that current Engage Chair, Christina McComb would become Chair of the joint organisation and Family Chief Executive, Simon Markey, would become Chief Executive.
Engage Mutual said from a commercial perspective, greater economies of scale would provide operational efficiencies, enhanced new business opportunities and a larger and improved capital base.
Engage Chair, Christina McComb, said: "We believe that combining our businesses would demonstrate the value of the mutual model through consolidation of our considerable individual financial strengths while maximising joint skills and capabilities to deliver a broader range of products and services to help families of all ages at key life stages."
Engage has ensured that should the transaction proceed, the future of the Engage Foundation, its £1m customer benefit fund, would continue. The merged business intends to commit £5m over 5 years, which would expand the Foundation significantly.
Peter Burrows chief executive of Engage Mutual said: "What matters to us is what matters to our customers. We believe being stronger together as a single business is the best way for us to deliver greater value, long term strength, and make a positive difference to the lives of our customers and their families. We will now seek the approval of our membership to merge with Family on this basis."
