With Profits
Welcome to the Reliance Mutual online with profits pages.
The following pages give some information about our with profits products and our bonus declaration for the year ending 31 December 2012. If you would like any further information, you can contact us by telephone on 01892 773396 (life policies) or 01892 773395 (pension policies), by email via the contacts page or you can write to Reliance Mutual Insurance Limited, Reliance House, 6 Vale Avenue, Tunbridge Wells, Kent, TN1 1RG. Calls may be recorded for training and monitoring purposes.
How our with profits business is structured
How we manage our with profits bonuses
Reports on with profits management
Bonus declaration at 31 December 2012
How Reliance Mutual's with profits business has built up
How our with profits business is structured
Over the years, Reliance Mutual has acquired with profits business from other companies. As a result of these acquisitions, we have six sub funds for operational purposes.
Click on this link to read about how our with profits business has been built up, and the structure of the subfunds
How we manage our with profits bonuses
All insurers managing with profits business are required to produce Principles and Practices of Financial Management (PPFM). This document sets out how we at Reliance Mutual operate our with profits business, in each of the sub funds.
Click on this link to view the PPFM.
We have also produced abridged versions of the PPFM, which are shorter and highlight the main issues involved in managing the with profits business. There is a different guide for each sub fund. The links below allow you to view these guides. If you are not sure which guide is relevant to your policy you can click on this link to see the business that is in each of the sub funds or you can contact us using the methods above.
- Reliance Mutual with profits fund (WPSF1)
- Criterion Life Assurance with profits fund (WPSF2)
- Family Assurance/Time Assurance ordinary business with profits fund (WPSF3)
- Family Assurance/Time Assurance retirement annuity with profits fund (WPSF4)
- University Life Assurance Society with profits fund (WPSF5)
- Hearts of Oak Insurance Company with profits fund (WPSF6)
Reports on with profits management
Every year the directors of Reliance Mutual report to with profits policyholders. In this report the directors confirm that they have managed the business as required by the PPFM, and describe how they have done this. The report is reviewed by the with profits actuary who adds his comments to it.
Click here to view the report of the directors for 2012.
Bonus declaration at 31 December 2012
Click on this link to find full details of current annual and final bonus rates for all the main classes of with profits policies. Rates are given for the annual bonuses declared at 31 December 2012 and the current rates of final bonus.
Frequently asked questions
Click on this link to see some frequently asked questions about bonuses and the answers.
How Reliance Mutual's with profits business has built up
Over the years, Reliance Mutual has acquired with profits business originally written by other companies. The main transactions involving with profits business were:
All the business of Burslem Mutual Assurance Society was acquired in 1962.
The Industrial Branch business of Nation Life Insurance Company was acquired in 1971.
All the business of Criterion Life Assurance limited was acquired in 2003 and transferred in to Reliance Mutual in 2004.
The business originally written by Time Assurance Society and Templeton Life Assurance Limited, which had been acquired by Family Assurance Friendly Society in 1994 was in turn transferred to Reliance Mutual in 2004.
In addition to these transactions involving with profits business, Reliance Mutual acquired The British Life Office Limited in 1958. We used British Life as a company to underwrite various types of without profits policies until 2004, when all its business was transferred into Reliance Mutual.
We acquired all the business of Eurolife Assurance Company Limited during 2005, and transferred this directly into Reliance Mutual at the time. None of this business is with profits.
In September 2006 we acquired the share capital of SEB Trygg Life (UK) Assurance Company. Initially we maintained this as a separate subsidiary company, having changed its name to RM Life Assurance Limited. In July 2007 we transferred this business, none of which is with profits, into Reliance Mutual.
In May 2007 we acquired the share capital of University Life Assurance Society from its current owner Equitable Life Assurance Society. The majority of this business is with profits. In July 2007, we transferred this business into Reliance Mutual, at the same time as transferring the business of RM Life Assurance Limited.
Also in July 2007, we acquired all the business of Hearts of Oak Friendly Society, which we transferred directly into Reliance Mutual. Hearts of Oak is our largest acquisition to date, involving in excess of £300million managed on behalf of more than 60,000 policyholders.
In July 2008 a further small block of business previously written by Time Assurance Society was transferred from Family Assurance Friendly Society to Reliance Mutual.
With profits sub funds
Our with profits business is written in six sub funds. These each have separately identified assets, and are operated in slightly different ways.
With Profits Sub Fund 1(WPSF1) contains all the with profits business originally written by Reliance Mutual, Burslem Mutual and Nation Life,
With profits Sub Fund 2 (WPSF2) comprises the former Criterion Life Assurance with profits fund.
With profits Sub Fund 3 (WPSF3) comprises the former Time Assurance Ordinary Benefit with profits fund.
With profits Sub Fund 4 (WPSF4) comprises the former Time Assurance Retirement Annuity with profits fund.
With profits Sub Fund 5 (WPSF5) comprises the former University Life Assurance Society business.
With profits Sub Fund 6 (WPSF6) comprises the former Hearts of Oak Friendly Society with profits policies.