The UK mutual insurance sector experienced a significant recovery in 2025, reporting improvements in both assets and gross written premiums (GWP), according to an analysis by Broadstone. This positive trend marks a rebound from 2024, when the largest participants faced average asset declines.
Broadstone’s study, based on publicly available Solvency and Financial Condition Reports (SFCRs) from members of the Association of Financial Mutuals (AFM) and comparable firms, revealed that the four largest participants saw an average 5% increase in assets in 2025, contrasting with a 2% decline in the previous year. The remaining group also achieved an average 5% gain, up from 1% in 2024. The number of participants reporting declining assets dropped from 12 in 2024 to just five in 2025.
Gross written premium growth was widespread across the sector. The median GWP rose to £39 million in 2025 from £37 million in 2024. Average growth rates were 6% for the four largest participants and 13% for the rest of the group, with eleven participants recording GWP growth exceeding 10%.
However, the report highlighted that gross claims increased for most participants at a faster pace than gross written premiums, with the median reaching £37 million in 2025, up from £31 million in 2024. Broadstone suggested that claims outpacing premiums could indicate growth challenges or be related to long-term business supported by historical investment returns.
Favorable investment conditions during the period, particularly strong equity performance, provided crucial support to sector earnings. Ewen Tweedie, actuarial director at Broadstone, noted that firms demonstrated momentum in supporting members through increased claims activity while benefiting from positive investment performance.
These findings are particularly relevant given the UK government’s stated ambition to double the size of the mutual and co-operative sector. Broadstone’s analysis suggests a move towards more proportionate supervision and reduced regulatory burdens to foster sector growth.
Despite the positive 2025 performance, Tweedie cautioned about potential headwinds for the upcoming year, including political instability within the UK and geopolitical tensions that could exacerbate cost of living pressures. The analysis encompassed both life and non-life mutual insurance firms.
The article also referenced broader industry trends, such as the UK group risk sector paying a record £2.69 billion in claims in 2025, and emphasized the growing impact of mental health on individuals and workplaces, underscoring the vital role of mutuals in supporting their members and communities through these challenges.
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