NFU Mutual

NFU Mutual is a UK insurance composite. It is a mutual business, therefore policyholder members own the business, and the executives and directors are accountable to them. The full name of the organisation is National Farmers' Union Mutual Insurance Society Limited.

The business is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, with complaints oversight available by statute via the Financial Ombudsman Service.

History

Founded in 1910 in Stratford-upon-Avon, Warwickshire, as the Midlands Farmers' Mutual Insurance Society Ltd, the company initially provided insurance exclusively to farmers' union members asserting a 15% premium discount. John William Lowe was the first chair, James Robertson Black became the first managing director in 1912, and his farmhouse was the first office.

The society became the official insurer of the National Farmers' Union (NFU) in 1919, adopting the name NFU Mutual. It was governed by 16 directors (eight from each organisation), limited membership to NFU members. Ralph Chisholm, later the first CEO, joined during this period.

In 1920, offices were established in Stratford-upon-Avon. An early director was Sir Basil Brooke who went on to be Prime Minister of Northern Ireland,

NFU Mutual became the official insurer of the NFU of Scotland in 1922. In 1928, it began to offer life assurance products and a pension scheme. A separate non-farming insurer, Avon Insurance, was established in 1925 (renamed 1931). The 1930s saw the use of a film unit for promotion. By 1940/41, NFU Mutual had over 100,000 policyholders, £1 million income, and £2 million assets. Assets reached £50m in the 1960s, but a major foot and mouth outbreak in 1967 temporarily stopped new related business. New head offices were built in Tiddington in 1984 with environmental considerations. Around 70% of NFU members were customers by 1985. Exeptional storms in 1987 and 1990 cost £30m and £58m in claims.

In July 1998 the Board put before the members proposals to change the Articles to give the Mutual freedom to insure anyone, irrespective of profession or occupation. Seeking to reassure the core farming customers that the change would not have an adverse impact, a product called Mutual Advantage was set up, restricted to NFU Members, which provided extra discounts and cover for farming customers. Mutual Advantage is still fielded as part of the business marketing to farming union members.

In the late 1990s, the demutualisation of NFU Mutual was explored by director John Murray who initially approached five venture capitalists in the hope of launching a bid. Substantial windfalls for members were anticipated. Commenting to the House of Commons Treasury Select Committee on the possibility of demutualisation, Andrew Young, the then managing director said:

''"In our view, members of a mutual should... decide how the business is run, and if they are not satisfied, they should get rid of the Board and the management rather than demutualise."''

In 2002, Andrew Young retired, succeeded by Ian Geden. He became group chief executive in 2005 when that post was created. During his term, the general insurance premium income grew from £603 million to £944 million.

In 2007, a series of floods brought more than 13,000 claims representing a liability close to £100 million.

In 2008, Lindsay Sinclair became Chief Executive (the first such appointment from outside NFU Mutual). He was Group Executive for 12 years, retiring in March 2021. In 2015, NFU Mutual closed two call centres.

In 2013, animal rights activists from BiteBack claimed they hacked NFU Mutual's computer network, taking customer details and modifying accounts; however, NFU Mutual denied any breach, asserting their systems were secure.

In March 2021, Nick Turner became chief executive.

In 2022, there was a surge in farm fires, costing NFU Mutual around £100 million in claims. The company also reported over 20,000 claims worth £170 million for Storm Arwen (2021) and Storms Dudley, Eunice, and Franklin (2022).

The 2022 Annual Report noted a "Principal Risk and Uncertainty" regarding significant changes in the customer base. Following the 2022 invasion of Ukraine, NFU Mutual announced it would divest its Russian holdings.

NFU Mutual reported receiving over 5,000 complaints (representing 3 complaints per 1,000 policies) from 1 July 2022 – 31 December 2022.

In 2022, the NFU Mutual went to the High Court to bring committal (imprisonment) proceedings against Mr. Khedir, who was sentenced to 10 months of for contempt of court after he admitted to lying about a at a hearing on fundamental dishonesty.

During that year, NFU Mutual won several industry fraud awards and NFU Mutual's Claims Validation Technical Manager David Phillips became chair of the General Insurance Fraud Committee of the ABI.

NFU Mutual was Which? 'Insurance Brand of the Year' for each of 2022' 2023, 2024 and 2025 and in 2023, NFU Mutual was the only Which? recommended provider of home insurance.

The business apologised in 2023 to a third party couple whose garden and swimming pool had been destroyed by a member of NFU Mutual and their buffalo herd.

In January 2024 Ali Capper, a member of the business's Remuneration Committee gave evidence to the Environment Food and Rural Affairs Committee about issues of power abuse and exploitation of farmers in the agri-food supply chain.

In 2024, a woman was successfully prosecuted by City of London Police for a fraud of £500,000 on the business. Later that year, the business apologised to a retired police officer, who was a third party to its policyholder, for making no progress in 2-year period with a subsidence claim for around £100,000 of damage.

Early in 2025, NFU Mutual said it was going to expand its plans in the high net worth market.

In 2025, gay, lesbian, transgender and queer members of staff marched in Birmingham Pride under NFU Mutual 'Mutual Pride' banner.

Financial performance

The business reported Group profits of £360million in 2024 with total funds under management of £20.9bn.

The Group made a profit of £164million in 2023, when total funds under management were £20.2 billion.

The group reported loss of £1.05bn for 2022.

The business experienced a period of underwriting losses for five consecutive years leading up to 2012. This was followed by a sustained period of underwriting profitability for six years, from 2015 to 2020. Subsequently, the business faced three years of underwriting losses between 2021 and 2023. In 2024, the business returned to underwriting profit, reporting £168 million.

In evidence given to Parliament, NFU Mutual has stated that it has between 65% and 75% of the UK farm insurance market.

Mutual Bonus

NFU Mutual states it reduces renewing premium depending on how long a policyholder has been insured with the business; claimed saving ranges from 5.5% in the first year of renewal up to 10.5% in the fifth year of renewal.

NFU Mutual also shared £71m of Mutual Investment Bonus in 2024 to eligible With-Profits customers.

Solvency

The NFU Mutual has asked the Prudential Regulation Authority to reduce the scale of reserves required for it under Solvency II Regulations. This is still in place for NFU Mutual. In 2022, NFU's Mutual solvency ratio was 218%.

Accountancy

In 2022, the Financial Reporting Council reviewed the accounting practices of NFU Mutual, asking for:

"further information about the insurer’s potential exposure to claims for business interruption (BI) due to the Covid-19 pandemic and its approach to accounting for, and the disclosure of, a related potential group action threatened against the company"

The FRC stated NFU Mutual 'provided a satisfactory response' in 2021, with the NFU Mutual saying "the potential exposure regarding the nature and extent of the risk was not determined to be material".

Governance

Membership

The management and conduct of the business is done under the authority of the members/policyholders who are senior to the directors and executives and may dismiss them.

There are around 900,000 members of the NFU Mutual. As NFU Mutual has no shareholders, a proportion of its profits, if any, are returned to policyholder members in the form of an adjustment on quoted premiums of renewing customers. A discount of between 5.5% and 10.5% (2025/26) is asserted by the Mutual which the business brands "Mutual Bonus".

Under NFU Mutual's articles of association, each policy generates a distinct right to speak and vote at the Annual General Meeting (AGM), scrutinise the accounts, and hold the management to account, as well as an ownership right in the business. The AGM has generally been held at the British Motor Museum at Gaydon, Warwickshire and is open to all policyholder members. In 2024 it was moved to a Leonardo's Hotels venue off the M69, and in 2025 the venue was transferred to the head office building in the village of Tiddington.

Senior leadership team

Board members "are responsible for the overall direction of the Company and setting the Company's values and standards". As of Spring 2023, it consisted of the following people:

* Jim McLaren MBE (chair), a farmer from Scotland
* Nick Turner (CEO), formally held offices at AXA
* Richard Morley (Finance Director), held positions at Lloyds Banking Group where he was finance director of the bank's international financial services business at the time of the 2008 financial crisis
* Rachel Kelsall (Customer Services Director), a former head of compliance
* Nick Watson (Sales & Agency Director) joined NFU Mutual from AXA

Non-executive directors are:

* John Deane sometime CEO of Chesnara who has served as a board member of Atom Bank, Royal London Group, Old Mutual, and Century Life;
* Ali Capper a director of the Oxford Farming Conference, a Nuffield scholar and an advertising operative
* Jon Bailie Senior Independent Director formally held office at AXA
* David Roper also the Senior Independent Director of Atom Bank and is also Chair of the National Youth Choirs of Great Britain
* David Smith currently Chair of Altitude Plc
* Alan Fairhead held offices in Zurich Insurance Group
* Sarah Simpson

On 1 April 2023 Elizabeth Buchanan joined the board of NFU Mutual as a non-executive director, however, she resigned just over 6 months later.

NFU Mutual's current Group Head of Legal and Company Secretary is Sian Johns, who took over from Jim Creechan during 2024.

Bev Mitchell is Marketing and Digital Director and Kenny Graves is HR Director. Gina Fusco, and Trisha Jones lately held these roles respectively.

Gender pay gap

In the 2021 report, there was a gender pay gap of 24.5% based on hourly wage (mean). The bonus gap is 50.9% (mean).

NFU Mutual was written to by the Equalities Minister in 2018 about its non-engagement with the Women in Finance Charter, which it later signed the same year.

Climate change

In 2022, NFU Mutual announced a carbon reduction strategy relating to its own operations. Targets include a 25% reduction in the business's own emissions by 2025 and a 50% reduction by 2030. To support this, NFU Mutual said it aims to maintain 100% renewable electricity purchase for its occupied premises. For its investments, the insurer is targeting a 50% emissions reduction in its equity and corporate bond portfolio by 2030.

In 2020, Ethical Consumer criticised NFU Mutual for "just talking about the climate impact of their offices" rather than the "far more significant impact of their investments". NFU Mutual responded saying: "We avoid areas we consider harmful such as predatory lenders, certain munitions, and climate-unfriendly companies with no plans to help decarbonisation."

Operations

Services and products

NFU Mutual offers: personal, business, and insurance. They specialise in agriculture-linked insurance. They als offer life insurance products, and income protection through AIG. The business also offers various investment and pension products, and sells financial advice and inheritance tax planning.

Relationship with farming unions

NFU Mutual is linked with main farming unions of the UK, and makes financial contributions to the UK farming unions: around £8.7million in 2024.

Agencies

NFU Mutual sells policies predominantly through a network of agents. At the end of 2018, NFU Mutual had over 3,800 employees, and 654 agents working out of 310 offices.

Property dealing and development

In 2021, NFU Mutual bought a unit near Milnrow for £27 million, and also committed to spending £100 million on six sheds near Clowes. Also in 2021, NFU Mutual's plans to invest in a warehouse in Witney attracted over 190 objections. NFU Mutual responded saying the warehouses would create 150 jobs that will benefit the local economy and will add much-needed high-quality space to the area. In April 2022 NFU Mutual's management allocated in excess of a further £20 million of members' funds to this speculative investment with its commercial partner Tungsten.

In March 2022, plans were announced to build a speculative £34 million shed in Staffordshire. Work has since begun on the shed. In April 2022, a shed was traded with Valor for £50 million.

In July 2022, NFU Mutual sold eight warehouses to American-based investment firm Barings LLC for £234 million and the negotiations were described as "contentious" when the deal completed in 2023. The property was subsequently sold within two years; the new ownership reported achieving a significant profit following a 20% increase in the asset's income during their relatively brief holding period.

In October 2022, along with partners Apache, NFU Mutual obtained a loan of £70 million from Deutsche Bank to finance a £150 million build-to-rent development in Liverpool. A 325 rental-home unit neighbourhood in Liverpool was funded with NFUM capital and loans and opened in late 2022. It is reported to be the UK's largest build to rent project.

In May 2023, it was revealed that the business was to sell another £90 million worth of real estate assets.

NFU Mutual liquidated retail assets in London in 2023; 24 Old Bond Street was sold for £141 million; 3/5 Bond Street was sold for £151 million.

In 2024, the business spent £20 million on another office building.

In 2025, the business closed its headquarters in Belfast and placed it on the market for £5 million; at the time over 60% of the rental area was vacant. It also confirmed it was closing part of its office accommodation in its Stratford headquarters territory. It also disposed of over £100 million of logistics assets in an off-market deal.

Subsidiaries

The business lists the following active subsidiaries:

* N.F.U. Mutual Unit Managers Limited: (No. 1837277). Registered in England. Registered Office: Tiddington Road, Stratford upon Avon, Warwickshire CV37 7BJ. Authorised corporate director of The NFU Mutual OEIC.
* The NFU Mutual OEIC: (No. IC000220) An investment company with variable capital incorporated in England. Authorised by the Financial Conduct Authority. Financial Services Register number 407816.
* The NFU Mutual Portfolio Funds OEIC: (No. IC000745) An investment company with variable capital incorporated in England. Authorised by the Financial Conduct Authority. Financial Services Register number 496718.
* NFU Mutual Select Investments Limited: (No. 8049488) Authorised by the Financial Conduct Authority. Financial Services Register number 582519
* Risk Management Services: NFU Mutual Risk Management Services Ltd. is a health and safety company set up in 1997. NFU members receive a discount on some Risk Management Services through Union Advantage.

Islands Insurance

NFU Mutual acquired the Islands Insurance Group in 1987, providing access to NFU Mutual products for customers in the Channel Islands.

Avon Insurance

Avon Insurance was established in 1925 to provide insurance to non-farming customers. The establishment of this enterprise was opposed by the NFU hierarchy and the NFU Mutual directors were required to agree that they would "consult on such matters in future". Business increased in the 1970s at 25–30% each year, and Avon opened an underwriting room near Lloyd's insurance market in 1977. In 1975, Avon became one of the first companies to introduce index-linking of sums insured to protect customers against inflation. Avon closed to new business in 2013.

Other insurance operations

In 1929, NFU Mutual bought another farming insurance company, Northern Farmers. Between 1948 and 1974, NFU Mutual had operations alongside unions in Central and East Africa, including what was then known as Rhodesia and Kenya. Operations in Kenya ceased in 1964 and Rhodesia in 1974.

Charitable activities

NFU Mutual Charitable Trust

NFU Mutual set up a Charitable Trust in 1998 for the elevating of need concerned with 'agriculture, rural development and insurance.'

In the past 24 years the independent charity has distributed funds averaging around £250,000 per year.

Farm Safety Foundation

In 2014, NFU Mutual set up the Farm Safety Foundation, an independent charity. It is concerned with education of young farmers, as well as eliminating avoidable deaths and addressing mental health issues.

Agency Giving Fund

NFU Mutual mandates an agency giving structure where local offices distribubute a portion of a central fund to charities in their local communities.

Research and reports

The busines issues an annual Rural Crime report based on its claims data.

Since 2016, NFU Mutual has produced an annual responsible business report.

Notable people

During World War II, Arthur Scarf, an employee was awarded a posthumous Victoria Cross.

A former chairman of NFU Mutual is Lord Curry of Kirkharle.

Harold Woolley, Baron Woolley was a director retiring in the 1980s.

Court cases

In ''Smith (Leah) v National Farmers Union Mutual Insurance Society Limited and Robinsons Services Limited'' 019NIQB 37, the company denied liability for an accident sustained during an employee's attendance at work, but the court found against the company.

NFU Mutual was involved in a winding-up petition that concerned Quay Street Limited in a 2020 UK Companies Court case.

In 2017, Preston-based law firm Barber & Co were ordered to pay costs to NFU Mutual after the firm represented a claimant in an injury case without instruction. Barber & Co lost the case and HHJ Peter Hughes referred the case onto the Solicitors Regulation Authority, Lancashire Police and the Crown Prosecution Service for further action. The law firm claimed the case was the result of "two non-qualified fee earners creating false documentation."

In 2016, NFU Mutual denied liability for a £128,000 bill for damage to a cottage from a burst water pipe. NFU Mutual lost the case and was ordered by Mr Justice Holgate to pay £100,000 in legal costs on top of the damage.

In ''Maritsave Ltd v National Farmers Union Mutual Insurance Society Ltd'' 011EWHC 1660 (QB) lost a case, having incorrectly denied an insurance claim following a fire: the court found they failed to prove a policy breach, and ordered them to pay Maritsave Ltd.'s claim and damages.

In 2010, NFU Mutual sought compensation from HSBC towards fire damage to a property on the basis of double insurance but the judge agreed with HSBC and NFU Mutual was liable for the full extent of the claim.

NFU Mutual has been a defendant/party in a number of contested cases where anonymity orders have been sought:

* JXZ -v- NFU Mutual Insurance Society Limited
* SS1 -v- Retter
* JSV -v- AGC and another
* TXX -v- DLL, National Farmers’ Union Mutual Insurance and others
NFU Mutual also currently has a live dispute about land ownership before the court.

Controversies

Frauds

In 2011, employee Gordon Murray was jailed for his fraud on the members of £400,000.

In 2018, Iain Wishlade also an NFU employee, was jailed for submitting a fraudulent payment request from his business LDK Ltd to NFU Mutual.

Business interruption and COVID-19

When the coronavirus pandemic emerged (December 2019) and subsequently triggered lockdowns (March 2020) NFU Mutual said it was not going to pay any claims on policies.

This position was considered not to be accurate by policyholders. In April 2020 an NFU Mutual customer questioned the insurer's position on business interruption in evidence to the House of Commons Treasury Select Committee.

NFU Mutual later changed its possition, and invited policyholders to claim for cancelation of advanced bookings coverage and did accept some claims under its Home and Lifestyle policies.

Commenting on the situation, the Professional Association of Self-Caterers said:

FU Mutual hashad a challenging Covid f which this latestjoint action against NFU for failure to pay out under Business Interruption s yet another part Their cheaper Home and Lifestyle policy paid out for Covid, but the more expensive policy did not ending the outcome of the litigationref name=":9">

The enduring dispute, which is still (April 2025) before the court relates to non-damage denial of access cover extensions, on which NFU Mutual has said its position is that asserted " is extension nly coveredlosses due to closure or restricted access by authorities following a specific incident or occurrence happening", explaining they thought they had sold cover only for events like a "bomb scare or a gas leak or a traffic accident".

Following the appeal to the UK Supreme Court (delivered January 2021) NFU Mutual published a statement saying it continued to feel it had no liability to meet claims for COVID-19 related business interruption. Following the UK Supreme Court's judgment, the FCA sent a "Dear CEO Letter" on 22 January 2021, informed insurance CEOs that the ruling broadened the number of policies likely to respond to business interruption claims, increasing the expectation of further litigation to resolve remaining disputes, and urged them to acknowledge the power imbalance with policyholders to facilitate quicker, cheaper resolutions by narrowing disputes, covering reasonable costs, and not seeking their own in litigation that clarified coverage gaps.

Shortly afterwards, a number of policyholders went public that they considered that the NFU Mutual was not applying the law correctly and was obliged to pay out on these policies, adding that they indented to bring group litigation to compel them to meet these obligations. In pursuance of this understanding, these policyholders formed litigation group and announced plans to bring proceedings in a group action against NFU Mutual for which they instructed Penningtons Manches Cooper LLP.

An article in 2021 alleged that NFU Mutual was among several firms deliberately delaying COVID-19 claims to avoid pay-outs, anticipating that businesses would fail before claims needed to be settled.

There are currently at least two live class actions being brought against NFU Mutual concerning these issues:
* In July 2024 the case ''South Farm Limited and others v. The National Farmers Union Mutual Insurance Society Ltd'' (CL-2024-000309) came to court with the Penningtons claimants filing their claim. However, NFU Mutual requested a delay in the proceedings (ultimately extending the time for it to file a defence by 6 months) awaiting the decision of the Court of Appeal in ''International Entertainment Holdings Ltd & Others v Allianz Insurance PLC'' (CL-2022-000687), in the event that case largely went against NFU Mutual's position. As of early 2025 this litigation continues. NFU Mutual a filed a defence in January 2025 in the High Court and the matter expected to go to trial during 2025.
* NFU Mutual was already, in 2023, defending another class action, ''Innventure Limited and others v. The National Farmers Union Mutual Insurance Society Limited'', associated with these kinds of liabilities which was filed in the court and served on them before the financial year end of 2023 on 22 September 2023. This action was "recommenced" in July 2024, with a spokesman for these solicitors saying: "this historic case... seeks to provide justice to the businesses who were unfairly reatedit’s important that all businesses receive adequate compensation for the losses they incurred.". Court filings show a defence was filed for the Barings group action by NFU Mutual on 17 March 2025, and the claimants' reply was filed on 23 April 2025.
* Beazley Group is also facing a third legal action regarding the same disputed matters, and it's currently at the same procedural stage and may be joined with this case.
There are also reports that "More businesses have applied" to join the claims, although NFU Mutual has told the press the litigation "only a small number of customers."

This litigation represents significant contingent liabilities for NFU Mutual. While the insurer has not confirmed the number, reports suggest "as many as 9,000 of these policies may have been sold"; with the average claim ''per policy'' in the Penningtons action standing at £392,086 the total potential exposure is estimated to be in the billions of pounds.

The situation has exposed NFU Mutual to criticism and caused it to express regret and concern. In a Chartered Institute of Insurance podcast at the beginning of the pandemic in May 2020, Nick Turner (at the time sales and agency director, and subsequently CEO) stated that the company would face challenges with its reputation and relationships from these matters:

Trust is important everywhere in insurance... If you haven't written a policy wording very precisely to protect the insurance company and bring clarity to the consumer, then that is where the problems lie.. We illhave to work to renew trust with certain customers ho may have been let down it will be challenging this is going to run and run  ... if he issues around policies we have sold have put policyholdersinto incredibly difficult positions or even administration, nothing is going to put a smile on heirface.

Turner accepted that policyholders not receiving business interruption payments could impact their welfare and mental health in this same podcast. This perspective was reiterated in commentary by chairman Jim McLaren in another podcast, who said:

And you mentioned mental health and it's a crucial area and one that's often overlooked other than by those who are suffering from real mental health challenges. And again, the Mutual recognises that.

  Commenting on this situation an impacted policyholder has said:

good faith, we paid our premiums to NFU Mutual for years to protect us ... we reached for the comfort and the security of the longstanding relationship with NFU Mutual and it turned to total ash.

In February 2023, the Insurance Post reported that complaints regarding a lack of coverage for COVID-19-related booking cancellations had been upheld. NFU Mutual later acknowledged on its website that some businesses were not properly advised and may have missed out on cover for COVID-19-related booking cancellations, adding that businesses offering pre-March 2020 overnight accommodation who were not offered this extension should contact NFU Mutual for case review and potential compensation.

In November 2020, the company's conduct in deducting COVID-19 support grants from its payments triggered by COVID-19 were called into question in debate in the House of Commons with John Glen MP stating:

I am aware that NFU Mutual has continued to make such deductions. As stated in my letter, these grants are intended to provide emergency support to businesses at this time of crisis, and it is the Government's firm expectation that they are not to be deducted from business interruption insurance claims

The Professional Association of Self-Caterers also noted:

FU Mutualwere the last major insurer to keep deducting Grants from pay-outs

Executive and director pay

In 2011, the issue of excessive pay has received negative attention, with the ''Insurance Times'' quoting an observer as saying: "Only two words come to mind – and they are ' snout' and ' trough'.

In 2013, a director of NFU Mutual, David Anderson, was scrutinised for his role as chief executive of the troubled Co-operative Bank during its financial collapse which had a capital short fall of £1.5bn. NFU Mutual's board left Anderson in place, going further and issuing a statement saying they benefited from his kind of advice and 'had no plans to review his appointment'.

Total emoluments to the highest paid director (Nick Turner) were stated as £1,965,789 in the 2024 accounts, and aggregate emolument the board was £5,125,771.

References

* Victor Head; ''A Triumph of Hope, The Story of the National Farmers Union Mutual Insurance Society Limited''; The National Farmers Union; 1985

External links

Fillings history at Companies House

Transitional Deduction Measure on Technical Provisions granted to the company to the Bank of England Predental Regulation Authority

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NFU Mutual complaints data

{{Coord missing, Warwickshire

Insurance companies of the United Kingdom
Mutual insurance companies
Agricultural insurance
Financial services companies established in 1910
1910 establishments in England
Companies based in Stratford-upon-Avon