Following regulatory approval, on 1 October 2020 the transfer of the Police Mutual group of companies to The Royal London Mutual Insurance Society Limited (Royal London) completed.

As you are aware, Forces Mutual is part of the Police Mutual group of companies which have transferred to Royal London.

We created this dedicated hub when we announced the proposed transfer in April. For more background information, below you'll find various important documents which related to the transfer, as well as Frequently Asked Questions produced to provide answers to key questions at the time.

Important documents

  • Instrument of Transfer
    The legal document setting out the terms under which the business will be transferred to Royal London
  • Summary of the Terms of the Transfer
    A summary of the legal document
  • Chief Actuary’s Report
    Sets out the Chief Actuary's analysis of the expected impact of the transfer on the Police Mutual Assurance Society Limited’s policyholders and members
  • With-Profits Actuary’s Report
    Sets out the With-Profits Actuary’s analysis of the expected impact of the transfer on the with-profits policyholders, both as policyholders and members of Police Mutual Assurance Society Limited
  • Independent Actuary’s Report
    The report produced by the actuary Gordon Wood of Ernst & Young (EY). He has been appointed to carry out an independent review of the expected impact of the transfer on the policyholders and members of both PMAS and Royal London. The appointment was approved by the PRA, having consulted with the FCA. This is the full report
  • Summary of the Independent Actuary’s Report
    This is Gordon Wood’s summary report, which summarises his conclusions
  • New PPFM
    The Principles and Practices of Financial Management (PPFM) document setting out the way that with-profits business is managed
  • Chief Actuary’s Supplementary Report
    Provides an update on the Chief Actuary's analysis of the expected impact of the transfer on the Police Mutual Assurance Society Limited’s policyholders and members
  • With-Profits Actuary’s Supplementary Report
    Provides an update on the With-Profits Actuary’s analysis of the expected impact of the transfer on the with-profits policyholders, both as policyholders and members of Police Mutual Assurance Society Limited
  • Independent Actuary’s Supplementary Report
    Provides an update on the report produced by the actuary Gordon Wood of Ernst & Young (EY). He has been appointed to carry out an independent review of the expected impact of the transfer on the policyholders and members of both PMAS and Royal London. The appointment was approved by the PRA, having consulted with the FCA

Frequently asked questions

+What needs to happen next for the proposal to proceed?

The transfer has to receive confirmation by the Prudential Regulation Authority (PRA), which will consult with the Financial Conduct Authority (FCA). Confirmation of the transfer will only be given if the PRA is satisfied that it is in the interests of members, taking into account any concerns from customers, members and, indeed, anyone else.

The PRA will consider any questions and concerns raised in a member and customer representation period and also hold an Oral Hearing, before deciding on confirmation of the transfer.

The Police Mutual group of companies, which also includes Forces Mutual, is formally applying to the Prudential Regulation Authority (PRA) to transfer Police Mutual to Royal London. The Police Mutual group of companies is also applying 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. They can also make representations to the PRA.

+How do I raise questions or concerns about the proposed transfer?

You can make representations or raise any concerns that you may have regarding the proposed transfer directly with the PRA. You need to send your representations to the PRA by Monday 3rd August 2020. If you would like to make oral representations, this is also the date by when you need to notify the PRA that you would like to do so.

Both these things can be done by email to: PRASecretariat-Representations@bankofengland.co.uk or post to: PRA Governance Function, PRA, 20 Moorgate, London, EC2R 6DA.

If interested parties give notice that they wish to make oral representations then these will be heard by the PRA on Monday 17th August 2020. There will be a facility for verbal representations to be made remotely. After these hearings, the PRA will decide on the confirmation of the transfer.

Please note that the PRA will seek feedback from Police Mutual on any written representations that are made and, as part of its consultation, will share the representations with the FCA. This is to ensure that the process is as transparent as possible, and to ensure that its decision on whether to confirm the transfer takes into account all relevant information.

If you are a policyholder/member resident in Jersey and Guernsey then you also have the right to object before the court in your jurisdiction.

+Who should customers contact about their policies after the transfer?

Customers will still be able to interact with Forces Mutual in many of the same ways as they have been used to using both web and phone channels.

+What are the key terms of the proposed transfer?

You can view the key terms of the proposed transfer in the Instrument of Transfer and the Summary of the Terms of the Transfer .

+What happens to existing policies?

There will be no changes to the terms of existing products and all policies will continue as normal.

+Will the Forces Mutual and Police Mutual brands remain?

Yes. Royal London is committed to the Police Mutual and Forces Mutual brands, which will be retained, with a reference to Police Mutual and Forces Mutual being part of the Royal London Group.

+When will the proposed transfer happen?

The current timeframe for the transfer to complete is 1 October, subject to the Confirmation Hearing by the PRA, and the sanction of the Jersey and Guernsey courts.

+If the proposal does proceed, if a customer doesn't support the transfer, can they withdraw their custom without penalty?

If an individual has an issue or concern, they can contact the PRA during the member consultation period to raise this. We see this transfer very much as a positive.

If an individual doesn’t like the proposal, then they can cancel the policies that they have purchased through us or unsubscribe from the services that they receive from Forces Mutual in the normal way. Any cancellation fees or charges would be applied in line with current terms and conditions, as we see this as normal business up until the transfer. We’d actually very much hope that every customer sees the benefit of the proposal and continues to deal with us for the longer term.

+What does this mean for healthcare?

As far as products are concerned, the key point is that the terms of existing products do not change. So, there will be no changes to the terms of existing healthcare products and all policies will continue as normal.

Going forward, our general insurance and healthcare products will be managed by Royal London. Naturally, over time and in the future, products and services will evolve and change to deliver on Royal London’s strategy and meet market needs and be in the best interests of members and customers. This might include changing the provider of certain products, or could equally mean no major changes.

+What will happen with my Kit and other insurance policies – will these continue and will it be by the same provider?

Yes, these will continue. As far as products are concerned, the key point is that the terms of existing products do not change. So, there will be no changes to the terms of existing insurance products and all policies will continue as normal and there are no current plans to change provider.

Going forward, our general insurance and healthcare products will be managed by Royal London. Naturally, over time and in the future, products and services will evolve and change to deliver on Royal London’s strategy and meet market needs and be in the best interests of members and customers. This might include changing the provider of certain products, or could equally mean no major changes.

+What is the impact on colleagues?

In the short term, there will be minimal changes for colleagues. The technical term for the proposal is a ‘Transfer of Engagements.’ So, with effect from 1 October 2020, colleagues will still be employed by Police Mutual Group which will become part of the larger Royal London business.

While it is too early to provide detail of the impacts on people and roles, from our discussions to date we know that Royal London will look to make some synergies across the business and make changes to align our structure to their business model.

However, it is important to recognise that the proposed transfer of the business to Royal London protects many more roles than our alternative options.

We are committed to sharing any impacts on colleagues as soon as these are understood. In the event that these changes do impact colleagues, we will ensure we provide them with all of the appropriate support.

+Why Royal London?

Police Mutual Assurance Society Limited 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 has committed to the Police Mutual and Forces 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.

We looked at a number of different options including other potential partners, but we concluded that Royal London was by far the best fit.

+Do I need to do anything?

If the transfer goes ahead, your policy will remain with your current provider. You will keep the same policy number and continue to make payments in the same way. In future your policy will continue to be serviced under the Forces Mutual brand but this will be part of Royal London rather than the Police Mutual group of companies.

+Will service levels be impacted?

The standards of service you are used to will be maintained by Royal London – they have made a commitment to maintain service levels. Members and customers will still be able to interact with Forces Mutual in many of the same ways as they have been used to, using both web and telephony channels.

Forces Mutual’s purpose of improving lives and its values underpin its approach. Everything it does for existing and potential members links back to the Forces Mutual purpose and this will continue to be important.

+Will the Forces Mutual brand remain?

Yes. Royal London is committed to both the Police Mutual and Forces Mutual brands, which will be retained, with a reference to Police Mutual and Forces Mutual being part of the Royal London Group. PMAS will no longer exist.