Association of Financial Mutuals to go live on New Year’s Day

The Association of Financial Mutuals will be launched on 1 January 2010.

Support from the Association of Mutual Insurers (AMI) has confirmed its merger with the Association of Friendly Societies (AFS) that will create a new trade body representing the UK's mutual insurance sector.

The vote of approval at AMI's annual general meeting follows a similar thumbs-up to the merger from the AFS in October.

Mike Yardley, CEO of Royal London Group will be the organisation's first chairman, and it is consulting with both existing bodies about the recruitment of a chief executive and other roles.

Yardley said: "During the financial crisis the mutual insurance sector has proved that it is robust and capable of providing exceptional value to its customers.

"Maintaining a vibrant mutual sector helps keep up competitive pressure on shareholder-owned firms and means consumers continue to be offered real choice.

"We look forward to the Association of Financial Mutuals making an even stronger case for the relevance of the mutual insurance sector," he added.