National Friendly has raised €15 million in Tier 2 capital from a syndicate of European insurers and pension schemes, marking a major step in the mutual’s strategic transformation and growth agenda.

The capital will support the Society’s plans to expand distribution, strengthen its balance sheet and develop new, affordable protection products aimed at broadening access to insurance.

Founded in 1868, National Friendly said the 10-year funding agreement was secured on competitive terms and would allow it to “invest boldly” in innovation while continuing to deliver value to its members.

Graham Singleton, National Friendly’s chief executive, said: “This is a transformational moment for National Friendly. Securing €15 million in Tier 2 capital gives us the financial flexibility to invest boldly in our strategic priorities – building innovative, affordable insurance solutions and extending our reach to underserved communities.

“The fundamental human need to protect loved ones during times of sickness, accident, or death remains as strong today as it was in 1868, and we are proud to meet that need with relevance and compassion.”

Chair Mark Searles said the investment underlined confidence in the Society’s growth strategy. “The board are delighted that the financiers have demonstrated their active support for the Society’s evolving strategy with strong growth at its centre,” he said.

“As a mutual insurer committed to putting its members first, National Friendly continues to re-establish itself as a leading Friendly Society in the UK protection space.

“The Society’s forward-looking strategy centres on providing accessible, affordable, and inclusive insurance, focusing on the events most likely to affect working individuals and families, and the funding will be utilised to accelerate this objective.”