2021 ANNUAL RESULTS
We are pleased to be able to report a strong set of financial results which is a testament to the strength of our mutual business model, to the hard work of our colleagues and to the value we provide to our members.
We continue to focus on providing the personal service expected of us which has been rewarded by a 78% increase in new business over the previous year. We know that our members value high quality service and this has been recognised by the number and quality of reviews received on almost a daily basis, the overwhelming majority of which rank us in the highest five star category.
We saw a significant rise in premium income compared with 2020 as new business recovered strongly from pandemic levels. The number of new members attracted to our ethical savings and investment products increased, as did the size of the average investment.
£14.1 million premium income, 33% increase on 2020
£9.2 million invested in our Ethical ISAs and Investment Bonds, 61% increase
£186.5 million total assets, 8% increase
Management expenses 1.16% of mean assets (2020 1.06%)
155% capital cover ratio
The benefits of asset diversification achieved through a multi asset fund have again proved to be very important in 2021 and provided steady growth in fast moving and volatile markets.
We continue to focus on efficiency and our costs remained flat even as we invested in the growth of our business. This will continue to be a key objective and our balance sheet strength and capital position means we are well positioned for the years ahead.
Peter Green, Chief Executive said:
“We’re very pleased to have been able to declare competitive bonuses on all of the policies in our Ethical With-profits Fund. The balanced mix of assets in our With-profits Fund continues to enable us to provide our members with a consistent return on their savings even though global investment markets are still exhibiting significant volatility.
“All of our savings and investment products are designed for the medium to long term. Unlike unit-linked schemes, members investing in our With-profits products benefit from our prudent investment strategy. This involves holding back some of the profits during years of good market performance to ensure that we can still pay bonuses to members during more volatile periods.
“This also enables our members to benefit from a more stable investment journey without risking the daily ups and downs associated with some stock market investments. This stability is particularly valuable when members are saving for a particular purpose and need to withdraw their funds at a specific time in life.
“I'm sure that members who have a Healthy Investment Ethical ISA or Investment Bond will be really pleased with the stable nature of their investment and its decent return”.
Peter attributes this good performance to the Society continuing to keep its costs under control and retaining the balanced portfolio of investments in its With-profits Fund.
We have successfully kept our costs at one of the lowest of comparable organisations and it will be a continuing priority for the Society.
Bonus statements are now being posted and should be received by members in the next few days.