Insurer Scottish Friendly Chooses Schroders for $2.37B Mandate

Schroders PLC announced Monday that it has been selected by U.K. mutual life and insurance firm Scottish Friendly Assurance Society Ltd. for a 2.1-billion-pound ($2.37 billion) multi-asset mandate to manage a portion of the firm’s insurance assets.

The mandate follows Scottish Friendly’s simplification of its product offering, “ensuring customers have a clearer selection of competitively priced funds managed by Schroders,” according to a statement from Schroders. The mandate will encompass the asset manager’s multi-asset and fundamental equity capabilities, according to Schroders.

“The mandate is a show of support for our strong investment capabilities, compelling active investment proposition and commitment to the mutual sector, which continues to be a key growth area for us,” said Phil Middleton, Schroders’ head of U.K., in a statement.

According to Schroders’ 2024 Global Investor Insights Survey, more than half of surveyed insurance managers said they intend to increase their global equity exposures, and 95% of insurers said they either are invested, or plan to invest in, the private markets.

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Schroders manages $143 billion in insurance assets globally.

Scottish Friendly manages 6.3 billion pounds ($8.34 billion) in assets and has more than 838,000 members. Earlier this month, the firm purchased deferred annuity plan and premium annuity business from Fidelity International. The transaction increased Scottish Friendly’s AUM by 2.16 billion pounds.