Frequently Asked Questions

+How does the proposal with Royal London affect Forces Mutual?

As you are aware, Forces Mutual is one of the Police Mutual group of companies.

The Police Mutual group of companies is proposing to become part of the larger structure of Royal London.

The Police Mutual group of companies are providers of financial services and products to the Police and Military. Police Mutual and Forces Mutual are trading names used within the Police Mutual group of companies.

+Why is the proposal to become part of Royal London being recommended?

The past few years have been challenging for the financial services industry, which has changed rapidly in that time. This, coupled with a difficult economic environment, has presented some significant challenges, particularly for relatively small financial services companies like Police Mutual and Forces Mutual.

The landscape in which we now operate means that continuing to offer products requires us to have a stronger financial position. Royal London provides that financial strength.

Becoming part of Royal London will provide a sustainable future for Forces Mutual and Police Mutual and preserve our brands and purpose, creating a new chapter in our long and evolving history.

We require a stronger financial base for our business to be able to continue to operate – Royal London, the UK’s largest mutual life insurance, pensions and investment company, is well-funded and will provide that financial strength.

The proposal would make us part of a larger, stronger business that has a broader business mix and offers a wider range of products. This partnering with Royal London gives the opportunity to create better customer offerings.

+Why is Royal London the right partner?

Police Mutual Assurance Society Limited, the Group’s holding company, has mutual status and heritage in common with Royal London, as well as complementary values and culture. The alignment in approach and guiding principles is striking and makes our becoming part of Royal London a good fit. Like ourselves, Royal London is committed to delivering the best value for its customers and members.

Our mutuality is an important part of who we are - reinvesting in the business, not paying or being answerable to shareholders. With Royal London that will continue.

Royal London is committed to the Forces Mutual and Police Mutual brands, which will be retained. Royal London is a strong mutual organisation that has committed to our goal of improving the financial wellbeing of the Police and Military families

The Independent Actuary, Police Mutual’s Chief Actuary and Police Mutual’s With-Profits Actuary have each concluded that the proposal that Police Mutual becomes part of Royal London is in the interests of members.

+What happens to my policy or policies?

The terms and conditions of existing policies will not change as a result of the transfer.

+What needs to happen for the proposal to proceed?

We are following the Police Mutual governance process for approval of the proposal, which involves a voting process by our network of Police Mutual member representatives in all the Police forces across the country.

The result of the vote has to be in favour of the proposal for it to go ahead.

+How will I know the result of the vote?

We will publish the result of the vote on the Forces Mutual and the Police Mutual websites on 4 June.

We will also announce the result of the vote on a notice at the Police Mutual office in Lichfield at Alexandra House, Queen Street, Lichfield WS13 6QS

+What happens if the vote is in favour of the transfer?

Police Mutual Assurance Society Limited will apply to the Prudential Regulation Authority (PRA) to transfer its entire business to Royal London. Police Mutual will also write to members and customers with details of the proposed transfer and invite them to raise any questions or concerns during a member and customer representation period.

Police Mutual will also apply to the Jersey and Guernsey courts seeking sanction of the transfer in respect of its policyholders/members resident in those jurisdictions. Those policyholders/members will be given the opportunity to object to the transfer before their respective courts.

+What are the implications of not voting ‘yes’?

Police Mutual faces a simple choice – joining a stronger business now, which will best protect the security of existing members and customers, or no longer being able to sell new policies and only being able to focus its efforts on existing members.

+How will the views of members and customers be captured?

After the voting process there will be an opportunity for members and customers – and indeed any interested parties – to raise questions. We will write to members and customers with details on how their views and comments can be presented. This will be in mid-June, following the vote on the proposal and subject to the result of that vote.