OneFamily and Scottish Friendly boards have proposed to merge, expected to be effective from early 2027.

The merger will bring together the two mutual life assurance providers to create what the boards describe as “one of the UK’s largest mutuals”.

The combined mutual will have almost £10bn assets under management and serve over 2.3m members across the UK.

Scottish Friendly’s John McGuigan will chair the combined organisation, while OneFamily’s Jim Islam will be the future chief executive.

These appointments will take effect when the merger is effective, and are subject to regulatory approval.

The boards of both organisations have agreed the principles of the merger, and a detailed integration plan will be developed and put in place in the months ahead.

Scottish Friendly chair John McGuigan says: “This is a powerful opportunity to build long-term value for our members. Joining together with OneFamily will create a strong and future-focused mutual life assurer that will be one of the largest in the UK. It’s an important new chapter that builds on our successful heritage and sets a pathway for sustainable growth.”

“Our organisations have a great deal in common, and we share pride in our mutual values. By combining, we will benefit from increased scale that will enable us to maximise our potential and make a difference in the market.”

OneFamily chair Steve Colsell adds: “Both our Boards recognise the significant opportunity that this presents for us to accelerate the development of our mutual proposition.”

“OneFamily has taken some bold steps to progress in recent years, investing in technology and modernisation, and extending the range of products we can offer customers.”

“Joining together with Scottish Friendly is the next step forwards on that journey. We are delighted to have reached this agreement together and are excited to see our plans take shape.”