Date: February 2010
MERGER PROPOSAL FORMALLY REJECTED BY MPFS
Early in 2009, The Committee of Management of
Police Mutual Assurance Society (Police Mutual) and the Board of
Management of Metropolitan Police Friendly Society (MPFS) announced
that they were to consult members about merging the two
Societies.
As one of the largest mutual friendly
societies, Police Mutual has continued to develop its customer base
and expand its reach, and an increasing number of members are now
drawn from the Metropolitan and City of London area - over 10,000
from these forces alone. With a growing number now being members of
both Societies, a merger would have supported Police Mutual’s
continued growth and secured a longer-term outlook for MPFS
members.
Following the initial announcement, both
Societies consulted with members, member representatives and staff
ahead of a Special General Meeting scheduled to take place in
October. Our consultation with Police Mutual members was broadly
supportive of a merger but not at a price or terms which would not
be in our members’ interests.
It was not possible to conclude negotiations
within the original timescale and at the end of September, Police
Mutual made a final offer to the MPFS board which proposed amongst
other benefits:
- lower costs to be charged to MPFS members than their current
and predicted future costs
- independent reassurance regarding the fair treatment of MPFS
members after the merger
- a cash sum to be payable to each MPFS member on merger
- a commitment to the continuation of a Met-specific brand and
representation
We believed this offer to be in the interests of members of both
Societies. In addition we would have liked MPFS members to have
been given the opportunity to have considered and voted on the
proposals themselves.
Unfortunately, our final offer was formally
rejected by the MPFS board at the end of last year. The only terms
acceptable to them would have required a significant financial
subsidy from Police Mutual which was not in the interests of Police
Mutual members.
We are now updating our members on the outcome
and remain very committed to the Metropolitan and City of London
Police Services. We will continue to ensure we develop our services
and products with our members in the Met and City area at the
forefront of our minds.