17 August 2021
Foresters Friendly Society achieves outstanding single premium growth in the first half of 2021
Foresters Friendly Society saw a continued significant increase in single premium investments (lump sums paid into plans) for the first half of 2021 following a successful first quarter.
The premium income was mainly in the form of new plans being opened, with the Foresters stocks & shares ISA leading the way, followed by payments into its Investment Bond, Lifetime ISA and Junior ISA products. Top ups to existing plans by existing members also continued to increase in the second quarter.
At the half year mark, single premium income increased by 132% (compared to the same time frame in 2020), with the Society’s Digital and Member Development channels continuing to deliver outstanding single premium income growth of 211% and 146% respectively.
Welcoming our younger members
The Lifetime ISA, which is designed for savers aged between 18 and 39 years of age and benefits from a 25% government bonus, is proving a success with savers. Comparing the sales performance with that of the first half of 2020, the Society has achieved:
- 201% increase in plan sales
- 212% increase in new business premium income
- 95% increase in payments into existing Lifetime ISAs
The Lifetime ISA allows policyholders to pay in up to £4,000 in a tax year to save for a first home or retirement.
As one of a few Lifetime ISA providers, Foresters is well placed to appeal to this younger audience through its discretionary benefit specifically for those in higher education.
Its Educational Awards can provide grants for members aged 16 and over who are in further education and studying for a recognised qualification. Up to £250 a year can be awarded for a full-time or part-time course, which will help to cover the cost of books, travel expenses or other items.
Unlike a student loan, these grants do not require paying back. For a 4 year course, this could amount to £1,000 of additional help for students at an often expensive time.
Foresters has a long and strong track record of giving back to its members in this way, through its member benefits package, and are proud to have paid £1.7million to members in discretionary grants in 2020 alone.
Rachel Webb, Chief Executive of Foresters Friendly Society commented “I am delighted with our new business performance throughout the first half of 2021 – notably the 132% increase in our individual single premiums.
These results are a testament to the hard work of all our staff in delivering exceptional customer service to our Members and ensuring we continue to provide relevant and accessible Member Benefits.
Whilst some of the increase in premiums collected has undoubtedly come from the ‘accidental savers’ arising out of the pandemic, we know that consumers have a choice and we are proud that they have chosen to put their trust in Foresters Friendly Society as a mutual provider.
Being a modern mutual, we are pleased to appeal to our wide range of members with a product offering that spans all lifestages. Our Lifetime ISA has proved particularly popular this year with 18-39 year olds and we are pleased to add value to their membership through our member benefits package, supporting them through early adulthood”.
Notes
Should members wish to claim for an Education Award, please use this form.
You could get back less than you pay in to the Society’s range of ISAs and the Investment Bond. The membership benefits we provide aren’t regulated by the Financial Conduct Authority or the Prudential Regulatory Authority, and are regularly reviewed by us to ensure they are relevant to our members.