The increase was achieved despite facing significant market and economic challenges, and represents the highest new business sales figures in the financial mutual’s 162-year history.

Assets under management also increased from £4.5 billion in 2022 to £4.6bn in 2023 and the number of Scottish Friendly members increased by 24,000 to 838,000 over the same period. Scottish Friendly currently administers almost two million policies.

As a mutual, Scottish Friendly is customer-owned and isn’t driven by the needs of shareholders. Instead, it can focus on continuing to distribute profits to eligible customers. Over 2023, customers who invested in the Scottish Friendly with-profits fund would have enjoyed an extra 2% return to the value of their plan on top of the investment return achieved, demonstrating the value of membership.

Strong protection sales delivered a sizeable uplift in those figures as more people sought to protect their income and family members. However, despite contributing to profits, sales of Scottish Friendly’s own-brand investment ISAs and JISAs fell in 2023 as the higher interest rate environment led more people opting to save into cash rather than invest in stocks and shares products.

Stephen McGee, Scottish Friendly’s chief executive, said: “It has been another positive year for Scottish Friendly, especially given the wider context of economic and market uncertainty. Despite that, we have we have seen the highest sales growth in our 162-year history and a notable increase in Scottish Friendly members too.

“We continue to deliver on our purpose of helping our members and their families achieve financial well-being through friendly products and customer care and we remain firmly committed to those principles.”

Mr McGee continued: “However, despite the backdrop of a record year in 2023, we won’t be resting on our laurels. We have already invested further in the business this year to enhance our operations, technology, security, infrastructure, and talent.

“But most importantly as a financial mutual we continue to create products and services that promote financial well-being and friendly and accessible customer care.

“This is part of a re-freshed strategy that will see Scottish Friendly continue to deliver for our customers, both now and over the long-term.”

Alan Rankine, Scottish Friendly’s chief financial officer, said: `These figures underline our robust financial fundamentals, strong operating performance, and that, combined with a customer-centric strategy and vision, we are well-positioned to continue to grow.

“As a financial mutual its fantastic to be able to share the benefits of that strength and success with Scottish Friendly’s members and we are proud to do so.”