Scottish Friendly

Scottish Friendly

File:Scottish friendly logo.gif
Company type	Friendly Society
Industry	Insurance
Founded	1862 (Glasgow)
Headquarters	Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ Glasgow, Scotland
Area served	Ireland, United Kingdom
Key people	MJ Walker LLB, Chairman FC McBain MA, Chief Executive Officer J Galbraith BSc, MBA, FFA, Deputy Chief Executive
Products	Long-term insurance and investment products
Total assets	£800m
Number of employees	60
Subsidiaries	Scottish Friendly Asset Managers Limited Scottish Friendly Insurance Services Limited Scottish Friendly Trustee Company Limited S.L. Insurance Services Limited SFIS (Nominees) Limited
Website	www.scottishfriendly.co.uk

Scottish Friendly Assurance Society Limited (Scottish Friendly) is a British friendly society and financial services group, providing financial products and services. The largest mutual life office in Scotland, Scottish Friendly is based in Glasgow, United Kingdom, and operates throughout the UK and Ireland. It has over 450,000 members and over 1 million policyholders. As of 31 December 2011, the society looked after assets worth more than £800 million.

History

Early beginnings

Scottish Friendly was established in 1862 as the City of Glasgow Friendly Society, and was a breakaway movement from the Royal Liver Friendly Society, whose headquarters were in Liverpool.

The first meeting of the City of Glasgow Friendly Society took place in the Bell Hotel, 68 Trongate, on 16 September 1862. The first committee consisted of seven men — James Logan (chairman), John Stewart (secretary), James Semple, William Jack, David Black, James Wilson and William Roche. The founder of the Society was John Stewart, who guaranteed a fund of £1,500. John Stewart would go on to become the Society’s general manager and treasurer.

During the first nine months of the Society’s existence, branches were opened in Aberdeen, Edinburgh, Bathgate and Perth. In 1867/68, the Society opened branches in Belfast, Sunderland, Troon, Kirriemuir, Kilsyth, Kirkwall, Manchester, Leeds, Dalry, Blairgowrie and Kilwinning.

By the end of 1884 the Society’s surplus was £14,276 and the membership was in the region of 70,000. In 1890, James Stewart took over the management of the Society along with father, John Stewart, who was suffering from ill health.

Towards the jubilee

On 19 April 1893, James Stewart succeeded his father as managing treasurer of the Society. On 10 March 1894, John Stewart died. By the end of 1896 the Society’s membership had risen to 104,833.

On 16 May 1900, the Society obtained a typewriter on a week’s trial. The Board appointed the first female member of staff – a typist who was paid 10s a week.

In 1911 the National Insurance Act was passed and the Board established a separate section known as the City of Glasgow Approved Society for Men and Women.

On 17 October 1912, Tom Johnston joined the board. A jubilee concert for the Society was held in Glasgow City Halls on 21 November, 1912.

The World Wars

In 1914, during World War 1, the Society cancelled a clause that stated that the sum payable should be reduced if death occurred as the result of war.

On 2 June 1915 a bust of John Stewart, the founder, was unveiled.

In August 1916, all 10,817 members of the Hulme Philanthropic Burial Society in Manchester voted that they should be taken over by the Society.

In June 1919, Tom Johnston was appointed vice-president of the Society. In 1922, he became a Member of Parliament and, on 10 October 1932, was appointed as James Stewart's deputy and successor, eventually taking over as general manager in 1934. In 1941, Johnston was appointed wartime Secretary of State for Scotland by Prime Minister Winston Churchill. He retired as the Society's general manager in 1946.

Post war

From 1946 to 1951, Henry V. Davison was general manager of the Society. James Stewart, son of the founder, died on 27 January 1950.

On New Year’s Day 1958, the Society took over the business and the members of the Western Mutual Assurance Society of Glasgow, incorporating 3,000 members and funds of £500,000. On 1 February 1960, the Dundee Burial Collecting Society approached the Society and another 15,116 members were incorporated with funds of £170,000.

In 1962, the Society celebrated its centenary. It was then the fifth largest collecting friendly society in the British isles with 20 branches in Scotland, six in Northern Ireland, five in south Wales, and 24 in England. Annual income was £1,150,000 with funds of around £6,800,000.

In 1968, the society purchased a Honeywell mainframe computer. The size of a small living room, it could store 256 kilobytes of data.

In the late 1970s, the Society began to make inroads to the endowment market and towards the end of the decade endowments represented 30% of new business.

1992 to date

In 1992, the City of Glasgow Friendly Society became Scottish Friendly, and two years later moved to new premises at 16 Blythswood Square.

In 1998, Scottish Friendly appointed a new finance manager, Fiona McBain, who would become the first woman to sit on the board. The same year, the company launched its own website.

In 2004 there was a restructuring of the business and gross premium income grew by 4% to £68m. Scottish Friendly’s assets reached a record £420m. The following year, Douglas Forbes stepped down as Scottish Friendly’s chairman (replaced by Graham Webster) and Bob Thomson retired as chief executive after more than 30 years’ service.

On 1 January 2006, Fiona McBain became group chief executive. The same year, Scottish Friendly secured the contract to provide Nucleus with back-office and logistical support for its wrap business.

In 2007, Scottish Friendly took over Scottish Legal Life, creating the largest transfer of engagements in the history of UK friendly societies. Having earlier acquired Rational Shelley (2005), Preston Operative (2006), and Pioneer Friendly, 2007 closed with the transfer of the London Aberdeen & Northern Mutual Assurance Society (LANMAS).

In 2008, Norwich Union (now Aviva) approached Scottish Friendly to administer its wrap business. The same year, Scottish Friendly won the Orange Prize for best use of technology at the Scottish Business Awards.

In 2011, Scottish Friendly began negotiations with Citi, part of Citigroup, with a view to selling Scottish Friendly’s wrap administration business, which was handling around £4bn of funds. On 1 January 2012, 134 Scottish Friendly employees were transferred, together with its offices in St Vincent Street and West George Street, to the American bank. In December, Scottish Friendly reported its best month ever for online sales, exceeding £500,000 in a single month for the very first time.

Operations

The Group and its subsidiaries.

Scottish Friendly Assurance Society Limited (SFAS) is a friendly or mutual society and the largest mutual life office in Scotland. Scottish Friendly has five wholly owned subsidiaries:

• Scottish Friendly Asset Managers Limited (conducts the business of managers for the transactions in Scottish Friendly ISAs, PEPs and Child Trust Funds)
• Scottish Friendly Insurance Services Limited (provision of administration services)
• Scottish Friendly Trustee Company Limited (trustee for the Scottish Friendly SIPP)
• SL Insurance Services Limited (conducted the business of agents for the transaction of general branch insurance)
• SFIS (Nominees) Limited (nominee company in relation to Scottish Friendly Insurance Services Limited’s ISA custody assets).

Scottish Friendly Investment Funds ICVC, an open-ended investment company, provides the stocks and shares component of the Scottish Friendly ISA and child trust fund.

Senior Management

Executive

FC McBain MA, ACA	Chief Executive (appointed 2006)
J Galbraith BSc, MBA, FFA	Deputy Chief Executive
NE Lovatt ACII, BA, MSc (Dip)	Sales and Marketing Director
DA Elston LLB, Solicitor	Head of Corporate Services
J Wilson BSc, BEng, MSc	Head of IT
L Gilmore BA (Econ), ACA	Head of Finance
I Neilson	Head of Client Servicing

Board of Directors

MJ Walker LLB	Chairman
JW Jack MA, CA	Vice-Chairman and Senior Independent Director
ML Berryman BSC, FIA
SEC Miller
DJ Jenkinson
FC McBain MA, ACA	Chief Executive
J Galbraith BSC, MBA, FFA	Deputy Chief Executive

Sponsorships

Since 1998, Scottish Friendly has been involved in supporting reading and literacy in remote and disadvantaged areas in Scotland through its sponsorship of the Scottish Friendly Children’s Book Tour, an outreach tour organised by the Scottish Book Trust. More recently, the programme has extended south of the border with author touring programmes in north-east and south-west England.

Scottish Friendly has also supported the 'Meet Our Authors' programme, created by the Scottish Book Trust to allow young people, parents and teachers to meet leading children's authors. The Children’s Laureate for 2011 to 2013, Julia Donaldson MBE, is involved in the programme, which has reached over 450,000 children and adults with its online broadcasts.

External links

• www.scottishfriendly.co.uk