NFU Mutual

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The National Farmers Union Mutual Insurance Society Limited
IndustryFinancial Services
HeadquartersTiddington, Stratford-upon-Avon, England
Key people
Lindsay Sinclair (Chief executive)
ProductsLife, general, pensions and investments
Number of employees
3,815[1] revenue = £1,000,000,000

The National Farmers Union Mutual Insurance Society Limited, trading as NFU Mutual, is a UK registered mutual insurance composite. It underwrites more than £1 billion (2008) in annual premium in life and general insurance lines for rural communities within the UK. NFU Mutual is based in Stratford-upon-Avon, Warwickshire. In contrast to insurance companies owned by their shareholders, NFU Mutual is owned by its policyholders.

Unlike most other UK insurers, NFU Mutual sells its policies predominantly through a network of tied agents which are located mainly in rural areas. At the end of 2014 NFU Mutual had 639 (2013: 655) NFU Mutual Agents working out of 319 (2013: 323) offices.[2] NFU Mutual employs around 3,800 people throughout the UK.[3] This network enjoys a close relationship with the National Farmers Union (NFU). In 1909 the NFU Mutual was formed to offer insurance as an inducement for farmers to join the NFU. Many of the agents double as local union representatives. Many agents are self-employed and all are tied to NFU Mutual products.

From 1980 the NFU Mutual has accepted risks from outside of the farming community. NFU Mutual Direct was set up in 1996 to provide telephone and internet call centre services. The affiliate, Avon Insurance plc, provides personal protection and personal injury insurance.

NFU Mutual is currently engaged in a program to open new branches where NFU Mutual has never ventured before including Battle, East Sussex; Southport, Merseyside; and Oxford city centre. A further ten were planned for 2010.[citation needed]


There are currently 13 people on the board of directors, notably:

  • Chief executive – Lindsay Sinclair
  • Chairman of board of directors – Richard Percy
  • Finance Director – TBC [4]

Lindsay Sinclair, the current CEO, joined NFU Mutual from ING Direct on 1 August 2008. A New Zealander, aged 52 at the time of joining, he is the first external CEO to be appointed at NFU Mutual. Ian Geden, his predecessor, was at NFU Mutual for more than 40 years.

NFU Mutual has strong financial solvency. It has assets of more than £10 billion and a Standard & Poor's credit rating of 'AA' (as of February 2005). NFU Mutual has a very high retention rate. Each year between 89.5% and 94.5% of policyholders renew.[2]

In 2008, the general insurance book paid out £86 for every £100 premium received. Acquisition costs are high, reflecting the costs and commissions inherent in maintaining the branch network. Net written premium for general insurance grew by over 5% between 2007 and 2008.[citation needed]

The average for complaints upheld in favour of complainants in general insurance first half 2014 as shown on the Financial Ombudsman's website is 36% and the NFU scored 38%. They are rated by Which[5] as No 1 insurer although fare slightly worse than average for complaints upheld against them.[6][7]


NFU Mutual was formed in 1910 by 7 local farmers as the Midlands Farmers Mutual Insurance Society Ltd., with working capital of just £190. It was formed to provide an inducement for farmers to join the NFU, which had been formed 2 years earlier. The provision of cheap insurance cover for NFU members contributed to the early growth of the NFU and NFU Mutual. Life insurance cover was introduced during the 1920s.

Although originally providing insurance only for members of the National Farmers Union, the mutual diversified outside of the farming industry during the 1980s. Over half of the policies by number now originate outside of the farming community.

NFU Mutual currently trades within only the UK, Channel Islands and Isle of Man. From 1948 to 1966, it offered insurance in Rhodesia (now Zimbabwe and Zambia), Kenya and Tanganyika (now in Tanzania). In 1954 the NFU Mutual orchestrated the building of the new skyscraper, Farmer's Mutual House, in Harare.

Famous policyholders include David Lloyd George, Aneurin Bevan and Anthony Eden.

Mutual bonus[edit]

As the NFU Mutual does not have shareholders, a large proportion of its profits are returned to customers in the form of a discount off the premiums of renewing customers. The maximum premium discount is 7% depending on the number of years that the policyholder has been using the mutual.

As part of the 100th anniversary, NFU Mutual intended to double the bonus for one year only.

See also[edit]


  • Victor Head; A Triumph of Hope, The Story of the National Farmers Union Mutual Insurance Society Limited; The National Farmers Union; 1985
  1. ^ "Report and accounts, 2013" (PDF). Archived from the original (PDF) on 12 September 2014. Retrieved 11 January 2015.
  2. ^ a b "REPORT AND ACCOUNTS 2014" (PDF). REPORT AND ACCOUNTS 2014. 2014. Retrieved 2 October 2017.
  3. ^ "NFU Mutual Careers site - ABOUT US". Retrieved 2 October 2017.
  4. ^ Missing or empty |title= (help)
  5. ^ "Our awards and industry ratings". Heritage & Awards Industry Ratings – NFU Mutual. Retrieved 2 October 2017.
  6. ^ "Archived copy". Archived from the original on 13 January 2015. Retrieved 23 January 2015.
  7. ^ "Complaints Data". Complaints Data – NFU Mutual. Retrieved 2 October 2017.

External links[edit]