Hubbry Logo
Friends ProvidentFriends ProvidentMain
Open search
Friends Provident
Community hub
Friends Provident
logo
7 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
Friends Provident
Friends Provident
Friends Provident
View on Wikipedia
from Wikipedia

Friends' Provident Insurance was a banking institution founded in 1832 to serve the needs of the Society of Friends (Quakers). Based in Bradford, Yorkshire, it concentrated on sickness and annuity policies until its life fund acquired Century Insurance in 1918, expanding into general insurance. The restriction to Quaker membership was an increasing constraint but the ties were substantially reduced by the Friends' Provident Institution Act 1915 (5 & 6 Geo. 5. c. xlv). Although Century's branch network enabled FPI to expand, the periodic underwriting losses strained the life fund's capital base and Century was sold in 1975. In the year 2000, Friends Provident demutualised and listed on the FT100 Index. After abortive takeover negotiations, Friends accepted a takeover bid from Resolution Limited in 2009.

Key Information

History

[edit]

The early years

[edit]

Samuel Tuke and Joseph Rowntree first mooted the ideal of a friendly society in 1829, to serve the needs of the Society of Friends (Quakers). Tuke, who was a prominent leader in the Society and a city councillor in York, took the lead and was the insurer's first chairman. No capital was initially subscribed; "solvency was guaranteed by a bond entered into by several trustees" chiefly of noted Quaker families. Funds were subsequently raised from 45 prominent Quakers and, with a board of 20 directors, Friends' Provident Insurance [FPI] was launched in 1832. There was only one member of staff, Benjamin Ecroyd the Secretary, a conveyancer in Bradford, and the FPI opened in a room above a confectioner's shop in Market Street Bradford. The office remained until 1862 when the FPI bought the old county court building at Darley Street.[1][2]

Friends' Provident Institution Act 1899
Act of Parliament
Parliament of the United Kingdom
Citation62 & 63 Vict. c. lv
Dates
Royal assent13 July 1899
Other legislation
Repealed byFriends' Provident Life Office Act 1975
Status: Repealed
Text of statute as originally enacted
Friends' Provident Institution Act 1915
Act of Parliament
Parliament of the United Kingdom
Long titleAn Act to incorporate the Friends' Provident Institution and to provide for the management of its affairs and for other purposes.
Citation5 & 6 Geo. 5. c. xlv
Dates
Royal assent2 July 1915
Other legislation
Repealed byFriends' Provident Life Office Act 1975
Status: Repealed
Text of statute as originally enacted

The first classes of business were annuities for members aged over 55 and children's deferred policies. After its initial ten years, when life funds had reached £150,000, FPI was able to declare its first bonuses on life policies. Agencies were gradually appointed, all through the offices of the Society of Friends and by 1862 there were 42 in England, one each in Wales and Scotland, and eight in Ireland. Life funds increased progressively to £1m. in 1870, £2m. in 1889, and £3m. in 1902. As FPI grew in size it, increasingly found itself constrained by the Friendly Society Acts and especially its confinement to members of the Society of Friends. By the 1890s this was regarded as serious impediment to growth The restriction on investment powers was resolved by the Friends' Provident Institution Act 1899 (62 & 63 Vict. c. lv) but the Quaker constraints took longer to resolve. There was little scope to increase agents as these were tied to Quaker meetings and had been fully exploited; there were no branches except London. Poor results in 1908 and 1909 led to a search for solutions and there were abortive negotiations for Royal Exchange Assurance to take over FPI in 1912. In 1914, FPI agreed to accept non-Quakers for non-profit policies only but the major change came with the Friends' Provident Institution Act 1915 (5 & 6 Geo. 5. c. xlv). This incorporated FPI as a mutual life assurance office free from the remaining restrictions of the Friendly Society Acts and accepting all the provisions of the Companies Act. It was no longer necessary to appoint trustees to hold property or exercise other legal functions. Under new rules membership still primarily required membership of, or association with. the Society of Friends; however, the directors were given power to admit any appropriate person. The directors now recognised that new leadership was required if FPI was to expand and in 1916 Henry Tapscott, the branch manager of Royal Exchange at Birmingham was appointed the first general manager; as a sign of the changes underway, he was not a Quaker.[1]

The Century acquisition

[edit]

A central part of Tapscott's strategy was to move FPI into general insurance but there were no powers to do so under the Friends' Provident Institution Act 1915. However, there was nothing to prevent it investing in a company and in 1918 FPI's life fund bought the Century Insurance Company of Edinburgh at a cost of £507,000, 15 per cent of the life fund's assets. Century was founded in 1885, as Sickness and Accident Assurance but as the general insurance business expanded it changed its name to Century Insurance Co. in 1901. Unlike FPI, Century had well-established branches with five in Scotland, 13 in England, one in Wales and two in Ireland and these were intended to be the vehicle for FPI's expansion. Century had also developed significant overseas interests. By 1914, agencies had been opened in eight European countries, two in Australia and three in India. A shred underwriting agreement had also been made with Henry W Brown, which operated in most states of the United States.[1]

Following the Century acquisition, the FPI head office was moved from Bradford to Kingsway, London; the head office of Century remained in Edinburgh but its general insurance business was moved to London. The Century agents were used to expand FPI's life business. In recognition of the changes, in 1920 the name of the company was changed to Friends' Provident and Century Life Office although legally Century remained owned by the FPI life fund. Apart from losses in marine insurance, the combined business made good progress. Through Century, the Pacific Coast Fire Company of Canada was also bought in 1920 and there was a further significant increase in the fire business when in 1926 it bought Liverpool Marine & General Insurance.[3] The growth in business required larger premises and in 1928 a new office at 7 Leadenhall Street was bought. However, the expansion of Century's business, particularly in North America was causing strains that would eventually lead to its disposal.[1]

By the late 1920s, the growth in Century's business was requiring an equivalent increase in capital and this put a strain on the resources of the FPI life fund. A new holding company, Century Insurance Trust, was formed to hold all the general insurance companies and this was able to raise its own loan capital. Worse was to come in the form of the Wall Street crash of 1929 and the subsequent depression. The Group was more heavily invested in U.S. and Canadian stocks than most life companies and those investments fell by more than 50 per cent. More than 60 per cent of Century's general insurance business was written in the U.S. and Canada; its premium income fell by 25 per cent over the two years 1929 and 1930 and underwriting results were also poor. By the end of 1930, FPI 's life fund assets were valued at five per cent less than its liabilities. FPI even cancelled its planned centenary bonus. Substantial cost reductions and better fund revaluations allowed the life business to grow. Friends Provident began writing pensions business in 1934 and this became large enough to form a group life and pensions department in 1937. By the end of the 1930s, life premium income was double that of 1929.[1]

The End of Century

[edit]

Post-war growth was encouraging, prompting a further move of head office. In 1954, Friends' Provident bought 43 acres outside Dorking in 1954 and a new headquarters was opened in 1958. However, the position in North America began to worsen. US and Canada made losses in fire and motor between 1951 and 1957 and Century made heavy trading losses in 1957, once again impacting on the value of the life fund. In 1963 Century withdrew entirely from the US fire and accident market and consolidated its position in Canada. Century suffered fire losses in 1973and 1974 and recognised that in accident and marine it was hard to match the expense ratios of the larger companies. At the same time, the need for increased solvency and regulatory changes had reduced the life fund's value of Century to less than half its written down value.[1] It was agreed that on 1 January 1975, Phoenix Insurance would buy all of Century Insurance worldwide for shares in the enlarged group. The official announcement stated that "This agreement is in the best interest of both companies with the advantages of a greater volume, well distributed"[4]

A Life Office once again

[edit]
Friends' Provident Life Office Act 1975
Act of Parliament
Parliament of the United Kingdom
Long titleAn Act to provide for the control and management of the Friends' Provident Life Office; and for other purposes.
Citation1975 c. xiv
Dates
Royal assent3 July 1975
Other legislation
Repeals/revokes
  • Friends' Provident Institution Act 1899
  • Friends' Provident Institution Act 1915
Status: Current legislation
Text of statute as originally enacted

The company; now known as Friends' Provident Life, was once again a life-only mutual company. Despite the problems of Century, it been expanding. In 1957 it had entered the life market in Canada by buying 90 per cent of Fidelity Life Assurance of Regina, Saskatchewan and in 1960 it opened a life branch in Australia. By the 1970s it had been agreed that the life business and the general business of Century should not be operated out of the same office and a separate branch structure was established for the life office. The sale of Century was followed by Friends' Provident Life Office Act 1975 (c. xiv) to update the rules, ending the requirement that a majority of the directors had to be Quakers. The new rules allowed for at least five out of a Board of ten to twenty directors to be Quakers. That year also saw Phoenix sell its Australian life business to Friends' Provident. By 1981, a league table of British life offices listed Friends' Provident as fifteenth by assets.[1]

In 1986 Friends merged with UK Provident.[5] In 1992 it became a foundation partner in the Eureko Alliance in association with AVCB (The Netherlands), Topdanmark (Denmark) and Wasa (Sweden). As part of this alliance, Friends Provident passed all of its then non UK subsidiaries (primarily in Australia, Canada and Ireland) into Eureko.[6] The Irish entity continued on the Friend's Provident brand for a number of years until ultimately renaming as Friends' First in 1998.[7]

In 1993 it acquired the UK operations of National Mutual of Australia and in 1998 it acquired London & Manchester Assurance.[5]

In November 1997, Friends Provident announced that it would merge its asset management business with Ivory and Sime, in a deal worth £132 million, thereby creating Friends Ivory & Sime.[8] Following the transaction, Friends Provident owned 67% of the combined entity.[9]

Demutualisation and the Resolution acquisition

[edit]

In the year 2000, Friends Provident demutualised and listed on the FT100 Index, raising £1.6m.[10] Its two main businesses were life and pensions, and asset management through its 67% holding in Friends Ivory and Sime. As part of the demutualisation the Friends Provident Foundation was endowed as an independent charity.[11] The asset management was enlarged by the purchase of Royal Sun & Alliance's asset business and then again in 2004 by the merger with F&C Asset Management. This left Friends Provident with 51% of the enlarged F & C, managing £125 billion funds. In July 2007, Friends announced an agreed "merger of equals" with insurer Resolution plc but this collapsed in November as a result of shareholder opposition. This prompted a strategic review, including cost cutting and a proposed demerger of F & C. In January 2008 Friends received an informal £4.1 billion offer by JC Flowers,[12] later aborted. In 2009 a newly formed Resolution Limited returned with a fresh approach and in August a bid of £1.86 billion was accepted.[13] In the November, Friends Provident duly became a subsidiary of Resolution.[14]

Operations

[edit]

The UK Life and Pensions business marketed a range of life protection, income protection, pensions and investment products for individual customers and corporate clients throughout the UK.[15]

The International Life and Pensions business operated throughout Europe, Asia, and the Middle East.[15]

Ethical stance

[edit]

Friends Provident was the first investment house in the UK to offer a fully ethical investment fund called the Stewardship fund.[16]

Members of the Friends Provident Group

[edit]
  • Friends Provident Life and Pension Limited – Provides life, pension and investment services within the UK
  • Friends Provident Life Assurance Limited – Provides life and investment services worldwide under English and Guernsey law.
  • Friends Provident International Limited – Formerly Royal and Sun Alliance International but was taken over in 2003. Provides life and investment services worldwide and operates under the law of the Isle of Man.

Offices

[edit]
The Friends Provident building on South Parade in Leeds.

Friends Provident had large offices in a number of locations including Manchester, Clyst St. Mary in Exeter and Dorking, and was the second largest employer in Salisbury. There are also a few smaller area offices such as those in Bristol and Preston.

Internationally Friends Provident had offices in Luxembourg, Hong Kong, Singapore and Dubai.

Sports sponsorships

[edit]

In 2009 the England and Wales Cricket Board (ECB) announced that Friends Provident would be the title sponsor for the new Twenty20 competition, the Friends Provident T20.[17]

In 2007 Friends Provident signed a three-year deal to sponsor the domestic one-day cricket competition, The Friends Provident Trophy.[18]

Friends Provident were the main sponsor of Southampton F.C. from 1999 to 2006 and also sponsored the St Mary's Stadium, from its construction in 2001 until 2006.[19] During this time, the venue was officially known as the Friends Provident St. Mary's Stadium.

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Friends Provident

View on Grokipedia
from Grokipedia
Friends Provident was a British life assurance company founded in 1832 by members of the () in , , to provide mutual financial protection to Quaker families who were often excluded from other insurance societies due to their pacifist principles and unwillingness to take oaths. Originally established as the Friends' Provident Institution, a , it expanded over the 19th and 20th centuries to offer , pensions, and investment products while maintaining a commitment to ethical and socially responsible practices rooted in Quaker values. The company demutualized in 2001, converting from a mutual society to a listed on the and distributing shares to policyholders as windfalls. In the , Friends Provident underwent major corporate changes, including a £1.86 billion acquisition by investment firm in 2009, which integrated it into a broader assurance portfolio. This led to the formation of Friends Life Group in 2011 through mergers with acquired businesses from and , creating one of the 's largest savings and providers with over £90 billion in at the time. plc then acquired Friends Life for £5.6 billion in 2015, fully integrating the UK operations into its portfolio and marking the end of Friends Provident as an independent entity. Separately, its international arm, Friends Provident International Limited, focused on offshore savings and protection products in , the , and , saw sell a 76% stake to International Financial Group Limited for £259 million in 2020 while retaining a 24% stake; continues to hold a 24% stake, and the business remains active under the Friends Provident brand within IFGL, serving over 214,000 customers with US$27 billion in as of 2025. The legacy of Friends Provident endures through the Friends Provident Foundation, an independent charity established in 2004 from unclaimed shares to support social and economic justice initiatives.

Overview

Founding principles

Friends Provident was established in 1832 in , , by members of the Society of Friends () as a mutual aimed at providing sickness benefits and life annuities to its members and their families. Key promoters included Samuel Tuke and Joseph Rowntree, both prominent Quakers who sought to create a mechanism for financial security within their community, reflecting the Society's emphasis on mutual support and prudence. Initially, eligibility for policies was restricted to Quakers, underscoring the society's origins as a closed, faith-based initiative designed to alleviate hardship among fellow members without reliance on speculative or external financial schemes. The founding was supported by an initial capital of £10,700, subscribed by 45 Quaker individuals at 5% interest to establish a life assurance fund. This funding structure embodied the Quaker commitment to and ethical , positioning the as a non-profit entity focused on long-term stability rather than profit-driven ventures. Over time, the 's scope expanded to include non-Quakers, broadening its reach while maintaining its mutual ethos. Central to Friends Provident's founding principles were the Quaker values of integrity, simplicity, and peace, which guided its investment approach toward non-speculative, responsible practices. Investments were deliberately aligned with these tenets, eschewing industries conflicting with Quaker testimonies—such as alcohol, , and armaments—in favor of secure, socially beneficial assets that promoted community welfare and avoided exploitation. The society operated under the framework of friendly societies legislation, formalizing its mutual status and ensuring governance rooted in democratic participation among members. This ethical foundation not only sustained the institution through its early decades but also laid the groundwork for its enduring reputation in responsible finance.

Current status and ownership

In 2015, plc completed its acquisition of Friends Life Group plc, which encompassed the UK life and pensions business of , integrating it into 's broader portfolio of and savings products. This transaction, valued at approximately £5.6 billion, allowed to become the 's largest , savings, and group at the time, while the Friends Provident brand was retained for select legacy products and customer-facing services within the operations. The integration focused on streamlining operations, with Friends Provident's offerings now managed under Life & Pensions Limited, emphasizing and protection solutions. Separately, in July 2020, sold a 76% stake in Friends Provident International Limited (FPIL), the offshore arm serving international markets, to International Financial Group Limited (IFGL) for £259 million, comprising £209 million in cash and £50 million in deferred consideration. This divestiture marked FPIL's transition to an independent entity under IFGL, a specialist in international life assurance based in the Isle of Man, targeting clients in , the , and with savings, , and products. initially retained a minority stake. As of 2025, FPIL continues to thrive under IFGL's ownership, which itself saw become its majority investor in 2023 to support further expansion. As of 2025, IFGL manages approximately $27 billion in assets under administration for over 214,000 customers. The company has received recognition for its performance, including IFGL being named Best International Life Group at the Investment International Awards in 2025. FPIL's product innovations, such as the International Protector + (IPME+) protection plan, have also garnered accolades, winning Best International Protection Plan at the International Adviser Global Awards in 2025 for its tailored coverage against death, terminal illness, and disability in regional markets. Today, there is no unified Friends Provident ; the UK life and pensions business remains fully integrated within Aviva, while FPIL operates as a distinct of IFGL, reflecting the complete separation of domestic and international operations post-2020. This structure enables specialized focus, with Aviva prioritizing its core and European markets and IFGL emphasizing offshore growth.

History

Early years and Quaker origins

The Friends Provident Institution began operations in 1832 as a mutual society providing life assurance and sickness benefits to members of the Society of Friends (Quakers) and their associates, embodying core Quaker principles of mutual aid and financial prudence. Initially registered under the Friendly Societies Act of 1830, it issued its first policies in November 1832, focusing on annuities for teachers and whole life policies, with funds invested conservatively in the National Debt. By 1835, the society had expanded to offer comprehensive life assurance products, including endowment and deferred policies for children, leveraging the Quakers' reputation for longevity to build a stable membership base. A key financial milestone came in 1847 with the distribution of surplus funds to policyholders, affirming the institution's without initial capital and relying on guarantees. In 1850, it introduced mandatory examinations for applicants, improving evaluation and practices in an era when such standards were emerging in the industry. The relocated within to Darley Street in 1862, enhancing operational efficiency amid growing administrative demands; by the late , annual meetings began shifting to to accommodate expanding networks. Growth accelerated, reaching over 5,000 policyholders and nearly £1.5 million in funds by 1879, with a focus on accessible assurance for Quaker families and connected individuals. The of the tested the life assurance sector, marked by bank failures and reduced premiums, but Friends Provident navigated these challenges through conservative investment strategies emphasizing secure, low-risk assets like government securities. Directors remained unremunerated until , underscoring the volunteer ethos rooted in Quaker ethics, which prioritized long-term stability over short-term gains. This resilience enabled steady expansion, with funds doubling to around £3 million by 1902 and policyholder numbers surpassing 10,000 by 1900, including early forays into industrial life assurance for working-class participants via appointed agents across the .

Key acquisitions and expansions

In the early 20th century, Friends Provident diversified beyond its core life assurance offerings by acquiring Century Insurance Co. Ltd. of Edinburgh in 1918, which introduced fire, accident, and permanent health insurance capabilities to its portfolio. This move renamed the entity Friends Provident and Century Life Office and leveraged Century's established network to broaden market reach, though it also brought periodic underwriting losses that strained resources. By 1975, to refocus on its mutual life assurance strengths and alleviate capital pressures, Friends Provident sold Century to the proprietary Phoenix Insurance Company. A significant milestone came in 1986 with the merger between Friends Provident and Provident Institution, creating one of the 's largest mutual offices and enhancing its scale in and savings products. This consolidation strengthened operational efficiencies and distribution channels, positioning the combined entity for further growth in the competitive assurance sector. The 1990s saw targeted acquisitions to bolster and investment offerings. In 1993, Friends Provident purchased the assurance and business of National Mutual of Australia, integrating established investment products and expanding its footprint in retail savings. This was followed in November 1998 by the acquisition of the London & Assurance Company for £744 million, which added substantial portfolios and enhanced product diversification in individual and group protection schemes. International expansion was marked by the acquisition of Royal & SunAlliance's offshore life assurance and investment subsidiary, originally stemming from Lloyd's Life (established 1978), which was renamed Friends Provident International and enabled entry into the and international savings market in , the , and beyond.

Demutualization and Resolution era

In 2001, Friends Provident underwent following a strong member vote in June, transitioning from a mutual society to a . The company listed on the London Stock Exchange as Friends Provident plc on July 9, 2001, with shares priced at 225p. Eligible members, numbering around 1.7 million, received allocations of 200 free shares each, valued at approximately £450 per basic package at flotation, while some with-profits policyholders obtained additional shares worth up to £11,000 depending on policy size. This process also established the Friends Provident Charitable Foundation to support , funded initially by unclaimed shares. During the 2000s, Friends Provident encountered significant strategic challenges amid broader market downturns, including the dot-com bust and the global financial crisis. New business sales declined sharply, dropping 11% in to £1.005 billion and a further 14% in the first nine months of to £701 million, as economic uncertainty reduced demand for and pensions products. The 2007 prompted the suspension of withdrawals from its £1.2 billion property fund due to liquidity pressures in commercial markets. Profits plummeted, with pre-tax profits falling 20% in the first half of amid volatile equity markets and failed asset disposals, leading to cost-cutting measures such as office closures and job reductions. In response, the company shifted emphasis toward managing its closed-book assurance portfolio—legacy policies no longer open to new business—to stabilize operations and improve efficiency in a low-growth environment. Resolution, a specialist in consolidating closed life assurance businesses, launched a takeover bid for Friends Provident in 2009 amid the insurer's ongoing struggles. After initial rejections of lower offers, Friends Provident's board accepted Resolution's revised proposal in August 2009, valuing the company at £1.86 billion or 79.4p per share, including a cash alternative for smaller holdings. The deal, completed in November 2009, integrated Friends Provident into Resolution's strategy of acquiring and optimizing underperforming life assurance portfolios, with initial plans focusing on cost synergies and retention of key management like CEO . By 2010, Resolution had formed Friends Provident Holdings (UK) plc as the parent entity for its expanded UK operations, incorporating the recent acquisitions of Axa's UK life and pensions business for £2.75 billion and Health Assurance for £102 million alongside the Friends Provident portfolio. This merger created a major closed-book focused group managing substantial assets, with pensions funds under management reaching £18.8 billion for the Friends Provident segment alone by late 2010, contributing to overall group scale in the tens of billions. This consolidation culminated in the 2011 formation of Friends Life Group, combining these assets into one of the UK's largest closed-book providers. The integration emphasized operational efficiencies, including £75 million in planned cost reductions, to address legacy challenges and position the entity for long-term value extraction from closed funds.

Aviva acquisition and post-2013 developments

In 2015, plc completed its acquisition of Friends Life Group Limited, which incorporated the core UK life and pensions operations of Friends Provident, in an all-share deal valued at approximately £5.6 billion. This transaction integrated Friends Provident's UK business into 's broader platform, enhancing 's market position in savings, pensions, and retirement income products, while the Friends Provident brand was retained for certain legacy policies to ensure continuity for existing customers. Following the acquisition, pursued rebranding initiatives and cost-saving measures to streamline operations across the combined entity. In , the company announced plans to reduce its workforce by around 1,500 positions by the end of 2017, targeting annual savings of £225 million through efficiencies in administration, IT systems, and overlapping functions, without affecting customer-facing roles. These efforts focused on consolidating the portfolios, with Friends Provident's heritage products gradually aligned under 's unified branding strategy. In 2020, divested its international arm, Friends Provident International Limited (FPIL), by selling a 76% stake to International Financial Group Limited (IFGL) for £259 million, comprising £209 million in cash and £50 million in deferred consideration. This transaction allowed FPIL, which managed approximately US$24 billion in assets (as of 2020) primarily serving clients in and the , to operate independently and pursue growth in emerging markets, while retained a minority interest and focused on its core and European operations. Since the sale, FPIL has continued to emphasize its ethical heritage under IFGL ownership, incorporating sustainable and responsible principles into its international savings and protection products. In 2025, IFGL strengthened its leadership with key senior appointments, including Rob Allen as Group CEO in May and a new Chief Sales Officer in September, supporting expanded operations and innovation in ethical financial solutions across global markets.

Operations

UK life and pensions business

Friends Provident's life and pensions business, now integrated within following the 2015 acquisition, offers a range of core protection and products tailored to individual and needs. The portfolio includes term assurance policies, available as level cover providing a fixed payout upon death during a specified term (up to 50 years or age 90) or decreasing cover designed to align with balances, with coverage up to £5 million and premiums starting from £5 per month. Whole-of-life policies provide lifelong coverage with a guaranteed payout on death, including specialized over-50s options with no medical for residents aged 50-80 and cover levels from £5,000 to £100,000. On the pensions side, individual offerings feature the Pension (a or SIPP) allowing flexible contributions from £25 monthly, tax relief benefits, and access to over 5,000 funds, shares, and ETFs for personalized . Group pensions encompass schemes enabling employer-sponsored savings with default strategies and optional self-select funds to support employee outcomes. Investment-linked savings plans, such as unit-linked bonds and endowments tied to life policies, permit policyholders to invest in a variety of funds with potential for growth, though subject to market risks. A significant aspect of the business involves managing legacy closed books stemming from historical operations and the Friends Life acquisition, encompassing over £70 billion in assets under administration as of the 2015 integration, focused on run-off strategies and annuity payments to ensure ongoing obligations to policyholders. These closed books, now part of Aviva's heritage portfolio, prioritize efficient administration of matured policies, with operating profit from run-off activities reported at £95 million in the first half of 2025, reflecting a controlled decline as claims and annuities are processed. The operations adhere to Financial Conduct Authority (FCA) regulations, emphasizing positive customer outcomes under the Consumer Duty framework implemented since 2023, which requires , suitable products, clear communications, and effective support throughout the policy lifecycle. This includes ongoing monitoring of transfers and legacy sales to mitigate risks like unsuitable advice, with committing to enhanced redress provisions for historic Friends Life policies where needed. Sustainable investment options are integrated into product funds, such as ethical and ESG-focused choices like the Liontrust UK Ethical Fund available within life and wrappers, aligning with 's carbon-neutral operations since 2006 and support for climate transition investments. Since the 2015 acquisition (building on Friends Life's formation in 2013), policy administration and claims processing have been unified with 's digital platforms, including online portals for real-time access to policy details, fund performance, and claims submission, streamlining operations for millions of customers. This integration facilitates faster claims payouts—often within days for straightforward —and automated drawdown options, enhancing efficiency while maintaining FCA-compliant transparency.

International operations

Friends Provident International (FPI), a of International Financial Group Limited (IFGL), conducts its offshore life assurance business primarily in and the , with additional targeted operations in focused on clients. The company maintains offices in and for Asian markets, for the , and its headquarters in the Isle of Man. It offers unit-linked policies, investment bonds, and protection plans such as the International Protector Middle East Edition Plus (IPME+), designed for expatriates and local nationals seeking flexible, tax-efficient savings and investment wrappers. FPI's international operations serve high-net-worth expatriates, institutions, and individuals requiring portable financial solutions across borders, with a particular emphasis on regions like the UAE, where nearly 48% of residents lack adequate life or critical illness coverage according to a 2018 company survey. In , the business includes propositions tailored for South African expatriates, complementing broader and strategies managed from . As part of IFGL, FPI contributes to group exceeding $27 billion, supporting over 214,000 customers worldwide. The company is authorized and regulated by the Isle of Man Financial Services Authority, benefiting from the island's robust framework, including an Aa3 sovereign rating from Moody's and full compliance for tax transparency. In 2025, FPI's parent company IFGL received the Best International Life Group award at the Investment International Awards and FPI's IPME+ received the Best International Protection Plan award at the International Adviser Awards, recognizing its offshore expertise. Following its 2020 sale from to IFGL, FPI has pursued expansion through senior leadership appointments, including Rob Allen as Group CEO in May 2025 and a new Chief Sales Officer, alongside enhancements to digital services such as acceptance of digital signatures introduced that year to streamline client onboarding amid global disruptions. These initiatives support ongoing growth in key markets.

Ethical policies

Ethical investment initiatives

Friends Provident pioneered ethical investing in the UK with the launch of the Stewardship fund in 1984, the country's first dedicated ethical , which screened out companies involved in , alcohol, arms, and . This initiative stemmed from the company's Quaker roots, emphasizing values-based investment decisions. The Stewardship range expanded in the 1990s with the introduction of Stewardship International in 1995, focusing on global equities while maintaining ethical criteria. By the 2000s, the funds began integrating environmental, social, and governance (ESG) factors more comprehensively into their screening processes, evolving from basic exclusions to broader assessments of and risk. Following Aviva's 2015 acquisition of Friends Life (which included the former Friends Provident business), ethical policies for funds continued under the Stewardship range, managed by , with rigorous negative screening to exclude sectors like fossil fuels, weapons, and violators. Internationally, through Friends Provident International (now part of IFGL), similar responsible approaches apply, using screening to avoid , alcohol, and other contentious activities. Aviva's group-wide ESG baseline policy screens thousands of companies annually across asset classes, applying revenue thresholds and zero-tolerance exclusions for severe issues. These initiatives have managed over £2.5 billion in ethical assets as of , setting benchmarks for responsible investing by demonstrating viable returns alongside ethical alignment and inspiring wider industry adoption of ESG integration.

Social responsibility commitments

The company also engaged in direct charitable partnerships, such as a collaboration with in the early 2000s, where it donated £80 to the organization for every sold to Oxfam supporters, supporting global poverty alleviation efforts. In the realm of diversity and inclusion, Friends Provident, integrated into since its 2015 acquisition, adheres to regulations by transparently reporting its annually, revealing efforts to address disparities through targeted policies. 's broader initiatives include promoting ethnic diversity at all organizational levels, fostering inclusive workplaces via training programs, and supporting efforts in underserved communities through community-based education outreach. For its UK operations under Aviva's ownership, the group has advanced sustainability pledges, announcing in 2021 an ambition to achieve net zero emissions by 2040—exceeding the 2050 global target—and implementing annual reporting on carbon footprint reductions across operations. As of 2024, these commitments encompass expanded employee volunteering schemes, which recorded a 159% increase in volunteer hours over the prior two years, enabling staff to contribute to local community projects and social impact activities.

Corporate structure

Subsidiaries and group members

Friends Life Limited, formerly known as Friends Provident Life and Pensions Limited, is a dormant within the Group in the , incorporated on 25 October 2000. Its business was transferred to Life & Pensions Limited in 2017, which now administers domestic life assurance policies, pensions, and products. Friends Life Limited holds certain legacy interests, including with-profits funds, under 's oversight as of 2025. Friends Provident International Limited (FPIL), an Isle of Man-incorporated company, functions as a core under International Financial Group Limited (IFGL) following its divestment from in 2020, focusing on offshore life assurance, savings, and investment solutions for international clients. IFGL, which acquired a 76% stake in FPIL for £259 million, integrates it alongside other brands such as RL360 and Ardan International to provide global , with assets under administration of USD 27 billion and 214,000 customers as of 2025. These holdings reflect historical consolidations that shaped the group's structure before the 2015 Aviva acquisition of Friends Life. Regarding , IFGL achieved operational independence post-2020 with a restructured board emphasizing international expertise; as of 2025, it is chaired by Matt Cuhls, with Rob Allen serving as Group CEO since May and Nick Verardi as an and chair of FPIL. This composition supports IFGL's focus on compliant, client-centric operations across its subsidiaries, while maintains integrated governance for its UK entities through group-wide policies.

Offices and locations

Friends Provident originated with its first offices established in , , in 1832, serving as the founding location for the mutual society aimed at providing life assurance to members of the Society of Friends (). In 1862, the head office relocated to 45 Darley Street in , a site that remained in use until 1919 and now holds symbolic historical significance for the company's Quaker roots. Following its integration into after the 2013 acquisition, Friends Provident's UK operations became centralized under Aviva's structure, with key administration now based in and coordination from the at 80 Fenchurch Street in . These locations reflect the company's expansion driven by growth in the mutual era, though many sites have been consolidated post-merger. Internationally, Friends Provident International Limited (FPIL), divested from in 2020, maintains its registered and head office at Royal Court in , handling global administration and compliance for offshore products. Additional hubs include the for Middle East distribution and client servicing, offices in and to oversee growth and investment solutions. These sites enable FPIL's focus on and international markets. Post-2020, modern facilities across the Aviva-integrated UK operations and IFGL (which acquired FPIL) emphasize hybrid work models, blending office-based collaboration with remote flexibility to support employee well-being amid evolving workplace norms. IFGL operations, encompassing FPIL, employ over 500 staff across sites in Douglas and Castletown, facilitating efficient international delivery.

Sponsorships and philanthropy

Sports sponsorships

Friends Provident engaged in several high-profile sports sponsorships during the and 2000s, focusing primarily on and football to align with its in the UK. These partnerships provided significant brand exposure through , kit branding, and stadium associations, reflecting the company's strategy as a life and pensions provider seeking to connect with affluent, family-oriented audiences. In cricket, Friends Provident held the title sponsorship for the domestic one-day knockout competition, known as the , from 2007 to 2009. This £2 million, three-year deal with the (ECB) renamed the event and included prominent visibility at key venues, such as semi-finals and the final at . Additionally, in 2009, Friends Provident secured for the inaugural domestic short-form competition, the Friends Provident t20, under a four-year agreement starting in 2010; this covered in-ground advertising like perimeter boards and replay screens, further solidifying its role in cricket. Friends Provident also sponsored from 1999 to 2006, serving as the club's principal kit sponsor and holding for the during that period. The agreement encompassed branding on home and away kits, training wear, and stadium signage, with a notable three-year renewal in 2003 valued at £3 million that aligned kit and venue sponsorships. This deal provided extensive exposure during Southampton's time in the and , including matches broadcast nationally. These sponsorships were strategically chosen to enhance brand visibility and foster long-term relationships within popular sports, particularly targeting middle-class demographics through cricket's traditional appeal and football's broad reach; The choices aligned with Friends Provident's ethical policies by supporting community-oriented, non-controversial sports.

Friends Provident Foundation

The Friends Provident Foundation was set up following the demutualisation of Friends Provident Life Office in 2001, initially funded with £20 million from unclaimed shares to promote charitable work and philanthropy. It became an independent charity in 2004, endowed by Friends Provident plc to support initiatives for a fair and sustainable economic system. Rooted in the Quaker heritage of equality, justice, and stewardship, the foundation operates separately from its corporate origins, using its endowment to drive social and economic change. The foundation's mission centers on advancing , ethical finance, and innovative investments to foster a resilient economy that benefits people and the planet. It prioritizes grants and investments addressing systemic inequalities, including support for ethical funds research to evaluate sustainable investment practices and community programs that enhance access to fair economic opportunities for underserved groups. In 2025, it participated in the launch of the WorkerTech fund by Resolution Ventures on September 15, committing to investments that scale technology-driven startups improving pay, prospects, power, and wellbeing for low-paid workers in insecure sectors. A key focus in 2025 involved joining five other foundations in an open call for investment proposals, collectively allocating up to £50 million from their endowments to create portfolios prioritizing the needs of through . This initiative challenges asset managers to design bold, sustainable strategies aligned with long-term societal benefits, building on the foundation's ongoing commitment to ethical and social impact. Governance is provided by an independent board of nine trustees, including Chair Stephen Mark Muers, who oversee grantmaking and investments without remuneration, ensuring alignment with the foundation's values. Annual grants fund projects that promote economic justice and innovation, such as partnerships for WorkerTech and research into ethical finance mechanisms.

References

  1. https://www.aviva.com/about-us/our-heritage/legacy-companies/
  2. https://www.aviva.com/about-us/our-heritage/timeline/
  3. https://static.aviva.io/content/dam/aviva-corporate/documents/investors/pdfs/reports/2009/2009-friends-provident-cr-report.pdf
  4. http://news.bbc.co.uk/2/hi/business/736517.stm
  5. https://www.theguardian.com/money/2001/jul/06/demutualisation.business
  6. https://www.theguardian.com/business/2009/aug/11/friends-provident-resolution-takeover
  7. https://static.aviva.io/content/dam/aviva-corporate/documents/newsroom/pdfs/newsreleases/2015/aviva-acquisition-friends-life/Friends_Life_Audited_Consolidated_Accounts_2011.pdf
  8. https://www.bbc.com/news/business-30288738
  9. https://www.aviva.com/newsroom/news-releases/2020/07/aviva-completes-the-sale-of-fpil/
  10. https://www.fpinternational.com/about-us/welcome-to-fpi/index.htm
  11. https://friendsprovidentfoundation.org/about-us/our-history/
  12. https://www.rowntreesociety.org.uk/explore-rowntree-history/rowntree-a-z/friends-provident-institution-2/
  13. https://theceme.org/wp-content/uploads/2015/07/Quaker-Capitalism.pdf
  14. https://digitalcommons.georgefox.edu/cgi/viewcontent.cgi?article=1053&context=quakerstudies
  15. https://quakerearthcare.org/friends-history-of-investing-with-integrity/
  16. https://www.aviva.co.uk/retirement/fund-centre/pension-funds/ex-friends-life-group-managed-funds/
  17. https://www.ifg-ltd.com/news/2020/ifgl-acquires-friends-provident-international.htm
  18. https://www.ifg-ltd.com/news/2023/cinven-becomes-new-ifgl-majority-investor.htm
  19. https://www.fpinternational.sg/media-csr/company-news-releases/ifgl-best-international-life-group-investment-awards-2025.htm
  20. https://www.fpinternational.com/media-csr/company-news-releases/ipme-plus-wins-best-international-protection-plan.htm
  21. https://journals.sas.ac.uk/fhs/article/viewFile/4552/4504
  22. https://hansard.parliament.uk/lords/1975-04-28/debates/0f2680b9-cd38-4a88-9441-2162d98b1d24/FriendsProvidentLifeOfficeBill
  23. https://www.aviva.co.uk/services/about-our-business/about-us/previous-companies/
  24. https://www.insurancetimes.co.uk/randsa-sells-offshore-operation-to-friends-provident/1348407.article
  25. https://www.moneymarketing.co.uk/news/friends-prov-members-vote-to-demutualise/
  26. https://www.heraldscotland.com/news/12243677.friends-members-vote-for-demutualisation/
  27. https://www.moneymarketing.co.uk/news/friends-foundation-looks-at-giving-for-charity/
  28. https://www.bloomberg.com/news/articles/2009-01-27/friends-provident-says-life-pensions-new-business-falls-11-
  29. https://www.sandiegouniontribune.com/2008/10/31/friends-provident-abandons-fc-and-lombard-sales/
  30. https://www.theguardian.com/business/2007/dec/21/friendsprovidentbusiness.creditcrunch
  31. https://citywire.com/new-model-adviser/news/friends-provident-profits-plunge-20-says-struggling-to-sell-f-and-c/a310812
  32. https://www.bloomberg.com/news/articles/2009-04-28/friends-provident-sales-drop-amid-financial-crisis
  33. https://assets.publishing.service.gov.uk/media/555de3a8e5274a70840000ba/Resolution.pdf
  34. https://www.nbcnews.com/id/wbna32355972
  35. https://www.moneymarketing.co.uk/news/resolutionfriends-deal-officially-completed/
  36. https://www.professionalpensions.com/news/1018857/friends-provident-accepts-gbp1-86bn-resolution-deal
  37. https://static.aviva.io/content/dam/aviva-corporate/documents/investors/pdfs/regulatoryreturns/2010/2010-friends-provident-pensions-limited.pdf
  38. https://www.bbc.com/news/business-11549959
  39. https://static.aviva.io/content/dam/aviva-corporate/documents/investors/pdfs/results/2010/2010-resolution-Q3-interim-mgmt-press-release.pdf
  40. https://www.theguardian.com/business/2010/jun/24/friends-provident-job-fears-axa-takeover
  41. https://www.aviva.com/newsroom/news-releases/2014/12/aviva-recommended-all-share-acquisition-of-friends-life-group-limited-by-aviva-plc-17377/
  42. https://www.theguardian.com/business/2015/jan/19/aviva-1500-job-losses-friends-life-merger
  43. https://www.bbc.com/news/business-30883907
  44. https://www.fpinternational.sg/our-expertise/company-profile/
  45. https://www.fpinternational.com/media-csr/company-news-releases/rob-allen-appointed-as-new-ceo-at-ifgl.htm
  46. https://www.fpinternational.com.hk/media-csr/company-news-releases/new-chief-sales-officer-and-other-senior-appointments-at-ifgl.htm
  47. https://www.aviva.co.uk/insurance/life-products/life-insurance/
  48. https://www.aviva.co.uk/retirement/aviva-pension/
  49. https://www.aviva.co.uk/retirement/fund-centre/life-funds/
  50. https://www.sec.gov/Archives/edgar/data/1140022/000119163814001543/av201412026k3.htm
  51. https://static.aviva.io/content/dam/aviva-corporate/documents/investors/pdfs/results/2025/aviva-plc-half-year-report-2025.pdf
  52. https://connect.avivab2b.co.uk/adviser/consumer-duty/
  53. https://www.moneymarketing.co.uk/news/aviva-ups-compensation-over-historic-friends-life-sales/
  54. https://www.aviva.co.uk/investments/ethical-investing/
  55. https://connect.avivab2b.co.uk/adviser/resources/product-support/investment-centre/responsible-investing/
  56. https://www.aviva.com/newsroom/news-releases/2014/11/possible-all-share-combination-of-aviva-plc-and-friends-life-group-limited-17371/
  57. https://advisers.fpinternational.com/about-us/our-locations/index.htm
  58. https://www.zawya.com/en/press-release/friends-provident-international-survey-finds-that-48-of-uae-residents-are-not-protected-in-the-event-of-their-e366z9mi
  59. https://www.fpinternational.ae/export/sites/default/documents/fpi-adds-south-african-expatriate-proposition.pdf
  60. https://www.fpinternational.com/media-csr/company-news-releases/
  61. https://www.fpinternational.com/about-us/our-isle-of-man-location/
  62. https://www.fpinternational.com/legal/registered-offices/
  63. https://advisers.fpinternational.ae/news/press-releases/index.htm
  64. https://www.aviva.co.uk/retirement/fund-centre/stewardship/
  65. https://www.fundecomarket.co.uk/sriesg/about-the-industry/early-ethical-funds/
  66. https://www.fundecomarket.co.uk/help/40-years-of-uk-retail-ethical-investment/
  67. https://www.theguardian.com/money/1999/nov/28/cash.theobserver10
  68. https://www.avivainvestors.com/en-gb/responsibility/
  69. https://www.fpinternational.com/fund-centre/responsible-investing/
  70. https://static.aviva.io/content/dam/aviva-corporate/documents/socialpurpose/pdfs/iwr-responsible-investment-report-2024-lr-updated.pdf
  71. https://www.investmentweek.co.uk/news/4028465/aviva-investors-brings-stewardship-funds-range-uk-wholesale-market
  72. https://www.theguardian.com/money/2009/jun/05/ethical-investments-funds
  73. https://www.oxfam.org.uk/documents/109/Annual_Report_2002.pdf
  74. https://www.aviva.com/about-us/diversity-equity-and-inclusion/
  75. https://www.aviva.com/newsroom/news-releases/2021/03/aviva-becomes-the-first-major-insurer-worldwide-to-target-Net-Zero-carbon-by-2040/
  76. https://www.postonline.co.uk/people/7957801/aviva-sees-uptick-in-employee-volunteering-amid-uk-decline
  77. https://find-and-update.company-information.service.gov.uk/company/04096141
  78. https://static.aviva.io/content/dam/document-library/adviser/general/gn16214c.pdf
  79. https://therightmortgage.co.uk/aviva-friends-life-has-now-moved-to-the-aviva-brand-find-out-what-this-means-for-you-and-your-clients/
  80. https://www.ifg-ltd.com/our-brands/
  81. https://www.isleofmanforlife.com/our-providers/friends-provident-international/
  82. https://www.ifg-ltd.com/news/2025/ifgl-boards-strengthened-by-non-exec-appointments.htm
  83. https://www.ifg-ltd.com/about-us/executive-team/
  84. https://www.aviva.com/investors/regulatory-returns/
  85. https://digitalcommons.georgefox.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1053&context=quakerstudies
  86. https://www.aviva.com/about-us/corporate-contacts/
  87. https://uk.finance.yahoo.com/news/aviva-closes-offices-three-uk-towns-friends-life-133139785--finance.html
  88. https://www.aviva.com/careers/smart-and-flexible-working/
  89. https://www.fpinternational.com/media-csr/company-news-releases/ifgl-wins-business-of-the-year-at-the-isle-of-man-awards-for-excellence.htm
  90. https://www.espncricinfo.com/story/friends-provident-to-sponsor-england-s-one-day-knockout-279606
  91. https://www.thepca.co.uk/press-release/friends-provident-announced-as-trophy-sponsor-08022007/
  92. https://www.sportindustry.biz/news-categories/news/friends-provident-title-sponsor-t20/
  93. https://www.campaignlive.co.uk/article/news-brief-southampton-fc-renews-sponsorship-deal-friends-provident/193902
  94. https://citywire.com/new-model-adviser/news/friends-provident-pulls-plug-on-saints-sponsorship-deal/a272674
  95. https://www.mortgagestrategy.co.uk/news/friends-provident-wont-drop-saints-sponsorship/
  96. https://friendsprovidentfoundation.org/about-us/
  97. https://friendsprovidentfoundation.org/friends-provident-foundation-invests-in-workertech-fund-to-back-start-ups-supporting-better-work/
  98. https://friendsprovidentfoundation.org/open-call-for-investment-proposals-for-a-50-million-portfolio-to-benefit-future-generations/
  99. https://friendsprovidentfoundation.org/investors-challenge-asset-managers-to-prioritise-needs-of-future-generations/
  100. https://register-of-charities.charitycommission.gov.uk/en/charity-search/-/charity-details/3982068/trustees
  101. https://friendsprovidentfoundation.org/grants/
Add your contribution
Related Hubs
User Avatar
No comments yet.