Shepherds Friendly paid out £3.25 million in income protection claims in 2025, after accepting 97% of claims.

The Manchester-based mutual society said the payout figure was slightly higher than the £3.23 million paid in 2024.

Its claims acceptance rate rose by one percentage point from 96% in 2024, while maintaining a five-year average of 95%.

Shepherds Friendly supported 475 families during the year and rejected 17 claims, down from 19 in 2024. The society said all declined claims related to applicants not meeting policy terms and conditions.

Musculoskeletal conditions were the most common reason for claims, accounting for 49% of accepted claims, down from 55% in 2024.

Chest, lung, nose and throat conditions accounted for 8% of claims, followed by mental illness at 6%, gastrointestinal conditions at 5%, cancer at 3%, and heart, neurological and surgery-related conditions at 2% each.

By value, musculoskeletal conditions accounted for 52.1% of payments. Mental illness represented the second-largest share at 12.5%, more than double its share of claims by number and one percentage point higher than in 2024.

Chest, lung, nose and throat conditions represented 6.2% of total payouts, with gastrointestinal issues at 4.5% and cancer at 3.7%.

Jonathan Sandell (pictured), chief executive of Shepherds Friendly, said: “We’re pleased to have helped so many members and their families during difficult times last year and are proud that we increased our payout ratio even further.

“This demonstrates our commitment to providing our members with financial support when they need it the most – something we’ve been doing consistently well for 200 years and counting and will continue to do for many years to come.”