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NFU Mutual
British mutual insurance company From Wikipedia, the free encyclopedia
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NFU Mutual is a UK insurance composite. It is a mutual business, therefore policyholder members own the business,[7] and the executives and directors are accountable to them. The full name of the organisation is National Farmers' Union Mutual Insurance Society Limited.
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The business is authorised the Prudential Regulation Authority,[8] and regulated by the Financial Conduct Authority[9] and with complaints oversight available by statute via the Financial Ombudsman Service.[10]
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History
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NFU Mutual was founded on 30 September 1910 in Stratford-upon-Avon, Warwickshire, by seven farmers as the Midlands Farmers' Mutual Insurance Society Ltd.[11] Established in the wake of the National Farmers Union's formation in 1908, the company initially served exclusively farmers' union members.[12]
Earliest operations were modest, with initial accounts showing premiums of £311 and a profit of £16. John William Lowe from Ettington served as the first chair until his death in August 1918. James Robertson Black became the first managing director in 1912, operating from his farmhouse in Clifford Chambers, which served as the Society's inaugural office. Among the founding members, John Metters made the first insurance claim, Madeley Burman led negotiations for official recognition with the NFU, and Arthur Pearce served as a director for 42 years.[11]
The First World War proved to be a period of significant growth for the nascent society. Government incentives to increase food production brought about a rapid expansion of cultivated land and new prosperity for farmers. This consequently led to a rise in NFU Mutual's premium income, from £1,300 in 1914 to £3,200 by the end of 1918.[11] In 1919, the society became the official insurer of the National Farmers' Union (NFU), formally adopting the name NFU Mutual. Its governance was structured with 16 directors, eight from each organisation, and membership remained limited to NFU members, who benefited from a 20% savings on insurance premiums.[12][11] Ralph Chisholm, who would later become the first CEO, joined during this pivotal period.[11]
In 1920, NFU Mutual established offices in Church Street, Stratford-upon-Avon, necessitating a £3,000 loan to acquire the property, which put a debt on the balance sheet.[11] This location served as the Society's headquarters for over 60 years until its relocation to the current home on Tiddington Road in 1984.[11]
An early director, Sir Basil Brooke, also played a prominent role in Northern Ireland public affairs, ultimately becoming Prime Minister of Northern Ireland. Brooke had a background in loyalist paramilitary activities, including commanding the Ulster Special Constabulary, and was known for publicly advocating for Protestant-only employment.[12][13][14]
The company continued its expansion in the 1920s and 1930s. NFU Mutual became the official insurer of the NFU of Scotland in 1922.[12] A subsidiary named Avon Insurance was established in 1925 to provide insurance products to non-farming customers.[12] By 1928, it began to offer life assurance products and a pension scheme. In 1931, NFU Mutual celebrated its 21st Birthday, offering a 5 per cent discount to policyholders of seven years' standing and hosting events including a formal dinner at the Piccadilly Hotel in London and a ball at Stratford Town Hall.[11] During the 1930s, NFU Mutual also developed a film unit for marketing promotion, producing silent films that used staff as actors.[11][12]
By 1940/41, NFU Mutual had grown to over 100,000 policyholders, with an income of £1 million and assets of £2 million.[11] Assets continued to increase, reaching £50 million in the 1960s, though a major foot and mouth outbreak in 1967 temporarily halted new related business.
New head offices, designed with environmental considerations, were built in Tiddington in 1984.[15] By 1985, approximately 70% of NFU members were also customers of NFU Mutual.[12] The late 1980s and early 1990s saw significant claims from exceptional storms, costing £30 million in 1987 and £58 million in 1990.[11]
In July 1998, the Board put forward proposals to its members to change the Articles of Association, granting the Mutual the freedom to insure anyone, irrespective of profession or occupation.
To reassure core farming customers that this change would not adversely affect them, a product called Mutual Advantage was introduced, restricted to NFU Members, providing extra discounts and cover for farming customers. Mutual Advantage continues to be a part of the business's marketing to farming union members.[11]
In the late 1990s, the potential demutualisation of NFU Mutual was explored by director John Murray, who initially approached five venture capitalists in the hope of launching a bid, with substantial windfalls for members anticipated.[16][17] Commenting on the possibility of demutualisation to the House of Commons Treasury Select Committee, Andrew Young, then managing director, stated:
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."[18]
Andrew Young retired in 2002, succeeded by Ian Geden, who became group chief executive in 2005 when that post was created. During his tenure, the general insurance premium income grew from £603 million to £944 million.[11] In 2007, a series of floods brought more than 13,000 claims, representing a liability close to £100 million.[11]
Lindsay Sinclair became Chief Executive in 2008, notable as the first such appointment from outside NFU Mutual. He served as Group Executive for 12 years, retiring in March 2021, at which point the "Lindsay Sinclair Peace Garden" was created at the head office to mark his departure.[19]
In 2015, NFU Mutual closed two call centres.[20]
Animal rights activists from BiteBack claimed in 2013 to have hacked NFU Mutual's computer network, taking customer details and modifying accounts; however, NFU Mutual denied any breach, asserting their systems were secure.[21]
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Recent Developments
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In March 2021, Nick Turner became chief executive.[22] He had joined the NFU Mutual board in 2013 as Sales & Agency Director, following 27 years at AXA in various sales, business development, marketing, and strategy roles.[23] He also served as President of the Chartered Insurance Institute[24] and the Personal Finance Society.[25]
In 2022, NFU Mutual faced significant claims, including around £100 million due to a surge in farm fires[26] and over 20,000 claims totaling £170 million from Storm Arwen (2021) and Storms Dudley, Eunice, and Franklin (2022).[27] The company's 2022 Annual Report noted a "Principal Risk and Uncertainty" regarding significant changes in the customer base.[28] Following the 2022 invasion of Ukraine, NFU Mutual announced it would divest its Russian holdings.[29]
The period from July to December 2022 saw NFU Mutual report over 5,000 complaints, representing 3 complaints per 1,000 policies.[30] In 2022, NFU Mutual successfully pursued committal (imprisonment) proceedings in the High Court against Mr. Khedir, who was sentenced to 10 months for contempt of court after admitting to lying at a hearing on fundamental dishonesty.[31] That same year, NFU Mutual won several industry fraud awards.[32]
In 2023, the business apologised to a third-party couple whose garden and swimming pool had been destroyed by a member's buffalo herd.[33] In January 2024, Ali Capper, a member of the business's Remuneration Committee, gave evidence to the Environment Food and Rural Affairs Committee concerning issues of power abuse and exploitation of farmers in the agri-food supply chain.[34] Also in 2024, a woman was successfully prosecuted by City of London Police for a £500,000 fraud against the business.[35] Later that year, the business apologised to a retired police officer, a third party to its policyholder, for a two-year delay in progressing a subsidence claim for approximately £100,000 of damage.[36]
Looking to early 2025, NFU Mutual announced plans to expand its presence in the high net worth market.[37] In May 2025, gay, lesbian, transgender and queer members of staff marched in Birmingham Pride under NFU Mutual's 'Mutual Pride' banner.[38]
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Financial performance
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The business reported Group profits of £360million in 2024 with total funds under management of £20.9bn.[39]
The Group made a profit of £164million in 2023, when total funds under management were £20.2 billion.[40]
The group reported loss of £1.05bn for 2022.[41]
The business experienced a period of underwriting losses for five consecutive years leading up to 2012.[42] 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.[39]
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.[39]
NFU Mutual also shared £71m of Mutual Investment Bonus in 2024 to eligible With-Profits customers.[39]
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.[43] In 2022, NFU's Mutual solvency ratio was 218%.[44]
Governance
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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.[45]
There are around 900,000 members of the NFU Mutual.[46] 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".[47]
Under NFU Mutual's articles of association,[48] 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.[49] The AGM has generally been held at the British Motor Museum at Gaydon, Warwickshire and is open to all policyholder members.[50] In 2024 it was moved to a Leonardo's Hotels venue off the M69,[51] and in 2025 the venue was transferred to the head office building in the village of Tiddington.[52]
Senior leadership team
Board members "are responsible for the overall direction of the Company and setting the Company's values and standards".[53] As of Spring 2023, it consisted of the following people:
- Jim McLaren MBE (chair),[54] a farmer from Scotland
- Nick Turner (CEO),[55] formally held offices at AXA
- Richard Morley (Finance Director),[56] 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[57] (Customer Services Director), a former head of compliance
- Nick Watson[58] (Sales & Agency Director) joined NFU Mutual from AXA
Non-executive directors are:
- John Deane[59] sometime CEO of Chesnara who has served as a board member of Atom Bank, Royal London Group, Old Mutual, and Century Life;
- Ali Capper[60] a director of the Oxford Farming Conference, a Nuffield scholar and an advertising operative
- Jon Bailie[61] Senior Independent Director formally held office at AXA
- David Roper[62] also the Senior Independent Director of Atom Bank and is also Chair of the National Youth Choirs of Great Britain
- David Smith[63] currently Chair of Altitude Plc
- Alan Fairhead[64] held offices in Zurich Insurance Group
- Sarah Simpson[65]
On 1 April 2023 Elizabeth Buchanan joined the board of NFU Mutual as a non-executive director,[66] however, she resigned just over 6 months later.[67]
NFU Mutual's current Group Head of Legal and Company Secretary is Sian Johns,[68] who took over from Jim Creechan [69] during 2024.
Bev Mitchell is Marketing and Digital Director and Kenny Graves is HR Director. Gina Fusco, and Trisha Jones[70] lately held these roles respectively.
Shift in Governance Structure: Constitutional Changes (2010)
During Lindsay Sinclair's tenure as Chief Executive (2008-2021), a significant governance update occurred in 2010. On January 4th of that year, NFU Mutual Insurance Association Limited formally passed Written Resolutions to align its constitutional documents with the fully implemented Companies Act 2006 (which came into force on October 1, 2009). These resolutions centralized power by adopting new Articles of Association, streamlining the company's core governing document and integrating former Memorandum details. Additionally, they granted directors the power to allot shares in accordance with Section 550 of the Companies Act 2006, providing a simplified mechanism for issuing new shares and removing the need for repeated member approval. These changes were agreed upon by NFU Mutual Management Company Ltd, the sole corporate member, reflecting a centralized governance structure that shifted power away from individual members towards the executives.[71]
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.[72]
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.[73]
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."[74]
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Relationship with farming unions
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NFU Mutual is linked with the main farming unions of the UK, and makes financial contributions to those unions each year. These contributions totalled around £8.7million in 2024.[39]
After becoming the official insurer of the National Farmers Union of England and Wales in 1919, the insurer forged similar links with NFU Scotland in 1922, the Ulster Farmers Union in 1930, the Manx National Farmers Union in 1947 and the Scottish Crofting Federation in 1986.[11]
A large number of NFU Presidents have been directors of the Mutual, including eight from the NFU, six from NFU Scotland, and four from Ulster.[11] Up until 1940 the venue for NFU Mutual's monthly Board meetings was the NFU's headquarters in London.[11]
In the 1930s the Board consisted of 18 farmers, the number which was laid down in 1919 at the time of national recognition by the NFU.[11] Today, the Board consists of three farmers, with nine non-farming directors with a background in financial services.[75]
In evidence given to Parliament, NFU Mutual has stated that it has between 65% and 75% of the UK farm insurance market.[76]
Agency Network
The majority of NFU Mutual insurance policies are sold through tied insurance Agents, who are also Group Secretaries of the NFU, based in market towns and rural locations around the UK.[11] At the end of 2018, NFU Mutual had 654 agents working out of 310 offices.[77]
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Operations
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Services and products
NFU Mutual offers personal insurances including car and home insurance, as well as commercial insurance for businesses. [78] [79] They specialise in agriculture and farm insurance.[79] They also offer life insurance products, and income protection through Aviva.[80] The business also offers various investment and pension products, and sells financial advice and inheritance tax planning.[81]
Regional Advisory Boards
NFU Mutual has a network of Regional Advisory Boards made up entirely of members, who meet with the Board and senior management, are briefed on the Group's performance and provide feedback.[82]
There are seven advisory boards, four in England, and one each in Scotland, Wales and Northern Ireland. They meet twice a year with Directors.[82] NFU Mutual also has an online customer panel called Mutual Voice which they use to gather customer views on products and services.[82]
Property dealing and development
In 2021, NFU Mutual bought a unit near Milnrow for £27 million,[83] and also committed to spending £100 million on six sheds near Clowes.[84] Also in 2021, NFU Mutual's plans to invest in a warehouse in Witney attracted over 190 objections.[85] 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.[86] 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.[87][88]
In March 2022, plans were announced to build a speculative £34 million shed in Staffordshire.[89] Work has since begun on the shed.[90] In April 2022, a shed was traded with Valor for £50 million.[91]
In July 2022, NFU Mutual sold eight warehouses to American-based investment firm Barings LLC for £234 million[92] and the negotiations were described as "contentious" when the deal completed in 2023.[93] 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.[94]
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.[95] A 325 rental-home unit neighbourhood in Liverpool was funded with NFUM capital and loans and opened in late 2022.[96] It is reported to be the UK's largest build to rent project.[97]
In May 2023, it was revealed that the business was to sell another £90 million worth of real estate assets.[98]
NFU Mutual liquidated retail assets in London in 2023; 24 Old Bond Street was sold for £141 million;[99] 3/5 Bond Street was sold for £151 million.[100]
In 2024, the business spent £20 million on another office building.[101]
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.[102] It also confirmed it was closing part of its office accommodation in its Stratford headquarters territory.[103] It also disposed of over £100 million of logistics assets in an off-market deal.[104]
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Subsidiaries
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The business lists the following active subsidiaries:[105]
- 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.[106] NFU members receive a discount on some Risk Management Services through Union Advantage.[107]
Islands Insurance
NFU Mutual acquired the Islands Insurance Group in 1987, providing access to NFU Mutual products for customers in the Channel Islands.[108] Employing more than 70 staff in offices in Jersey, Guernsey and Alderney, it offers insurance, broking, and financial advice.[11]
Avon Insurance
Avon Insurance was established in 1925 to provide insurance to non-farming customers.[109][12] It began life as the Farmers Commercial Insurance Company before being renamed.[11] 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".[11] Business increased in the 1970s at 25–30% each year, and Avon opened an underwriting room near Lloyd's insurance market in 1977.[12] In 1975, Avon became one of the first companies to introduce index-linking of sums insured to protect customers against inflation.[12] Avon closed to new business in 2013.[110]
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.
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Charitable activities
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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.'[111]
In the past 24 years the independent charity has distributed funds averaging around £250,000 per year.[112] Since it was founded, the Trust has donated more than £9.7million towards causes included education, research, social welfare and poverty relief.[113]
In 2025, the insurer pledged £1.2m to the Charitable Trust.[113]
Farm Safety Foundation
In 2014, NFU Mutual set up the Farm Safety Foundation, an independent charity. It is concerned with education of young farmers,[114] as well as eliminating avoidable deaths and addressing mental health issues.[115]
In 2025, NFU Mutual donated £370,000 to the Foundation so it can continue to raise awareness of and address attitudes and behaviours of mental health.[113]
Agency Giving Fund
First launched in 2020 in response to the Covid-19 pandemic,[116] NFU Mutual mandates an agency giving structure where local offices distribute a portion of a central fund to charities in their local communities.[117]
The fund will be donating £2.33m to local front-line charities in 2025.[116] This is an increase from the £1.92m it donated to charities in 2024.[118] Recipients include charities providing emotional and social support, like community cafes,[118] horse riding clubs for the disabled, and out-of-hours blood bikes.[119]
Covid-19 Support
In 2020, NFU Mutual launched a £32million support package for 'customers and communities affected by Coronavirus.[120] Extensions to home, motor, travel and commercial insurance policies made up £24million of this package.[120] There was £5million given to their offices, and an additional £1.8m in charitable donations.[120]
NFU Mutual are also supporters of the Covid-19 Support Fund, a £104million charitable fund set up by the insurance and long-term savings industry with the Government.[121]
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Research and reports
Rural Crime Report
The business issues an annual Rural Crime report based on estimates from its claims data.[122] The 2025 report revealed that rural crime cost the UK an estimated £44.1million in 2024, down from £52.8m in 2023.[123] Agricultural vehicle thefts fell by 35% to an estimated £7m, and GPS unit theft was down 71% to £1.2m following a spike in 2023.[123]
Code for Countryside Roads
In 2024, the business issued a Rural Road Safety Report that found collisions on rural roads were four times more likely to result in a fatality.[124] In response to those figures, NFU Mutual launched a Code for Countryside Roads to help motorists use rural roads safely and respectfully.[124][125]
Responsible Business Report
Since 2016, NFU Mutual has produced an annual responsible business report.[126]
Awards
Which? Awards
NFU Mutual has been named Which? Insurance Brand of the Year in the UK for four years in a row (2022; 2023; 2024; 2025), with the consumer champion noting the insurer “stands out among other providers as it has comparatively high customer and claims scores, it scores well for good value for money and it offers high-performing products.”[127]
NFU Mutual were also shortlisted for the Which? 2025 Customer Service Brand of the Year award.[128]
Employer Awards
NFU Mutual was the 17th best place to work in the UK in 2024 according to Glassdoor.[129] This was an increase from 43rd in 2023.[130]
The business won the Gallup Exceptional Workplace Award for a tenth successive year in 2025.[131]
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Notable people
During World War II, Arthur Scarf, an employee was awarded a posthumous Victoria Cross.[11]
A former chairman of NFU Mutual is Lord Curry of Kirkharle.[11] He was appointed a director of NFU Mutual in 1997, and was Vice-Chairman before being elected Chairman in 2003.[11]
Harold Woolley, Baron Woolley was a director retiring in the 1980s.[132]
Court cases
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In Smith (Leah) v National Farmers Union Mutual Insurance Society Limited and Robinsons Services Limited [2019] NIQB 37, the company denied liability for an accident sustained during an employee's attendance at work, but the court found against the company.[133]
NFU Mutual was involved in a winding-up petition that concerned Quay Street Limited in a 2020 UK Companies Court case.[134]
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."[135]
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.[136]
In Maritsave Ltd v National Farmers Union Mutual Insurance Society Ltd [2011] EWHC 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.[137]
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.[138]
NFU Mutual has been a defendant/party[139] in a number of contested cases where anonymity orders have been sought:
- JXZ -v- NFU Mutual Insurance Society Limited[140]
- SS1 -v- Retter[141]
- JSV -v- AGC and another[142]
- TXX -v- DLL, National Farmers’ Union Mutual Insurance and others[143]
NFU Mutual also currently has a live dispute about land ownership before the court.[144]
Controversies
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Frauds
In 2011, employee Gordon Murray was jailed for his fraud on the members of £400,000.[145][146]
In 2018, Iain Wishlade also an NFU employee, was jailed for submitting a fraudulent payment request from his business LDK Ltd to NFU Mutual.[147]
There have also been periodic frauds on the NFUM by its policy holder members.[148] The most serious of these saw the perpetrator jailed for 20 years following the arrangement of an explosion which injured 81 people.[149]
Business interruption and COVID-19
When the coronavirus pandemic emerged (December 2019[150]) and subsequently triggered lockdowns (March 2020[151]), NFU Mutual said it was not going to respond to any claims on policies,[152] stating:[153][154][155]
customers will not be covered for Coronavirus... as a Mutual, one of our duties to our members is to remain solvent.[156]
Regarding the company's early communications during this period, Jo Lumani, then Head of Reputation, highlighted the critical nature of crisis communication. She was quoted on the website of Insignia Crisis Management, a specialist reputation crisis management consultancy retained by NFU Mutual, discussing the reputational risks NFU Mutual faced, particularly concerning their perception of policyholder reaction to their initial firm refusal to support customers:
It’s so easy to get communication wrong in a crisis and suffer a devastating loss of reputation as a result. Our foundation of crisis communication planning, resources and capability meant we could communicate quickly, effectively and empathetically when COVID-19 emerged, and so retain the trust of our stakeholders.[157]
However, policyholders widely disputed NFU Mutual's position, considering it inaccurate, which led to significant contention.
Shifting Stance and Public Scrutiny
In April 2020 an NFU Mutual customers questioned the insurer's position on business interruption in evidence to the House of Commons Treasury Select Committee.[158]
This public scrutiny pointed to the initial cracks in what had been NFU Mutual's unyielding blanket refusal. The insurer's position subsequently shifted as follows.
- NFU Mutual invited policyholders to claim for cancellation of advanced bookings coverage and did accept some claims under its Home and Lifestyle policies.[159]
- Further demonstrating this change, in February 2023, the Insurance Post reported that complaints regarding a lack of coverage for COVID-19-related booking cancellations had been upheld.[160] and NFU Mutual and invited policyholders to claim for cancelation of advanced bookings coverage[161]
- 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.[162]
Commenting on this situation in February 2022, the Professional Association of Self-Caterers said:
[NFU Mutual has] had a challenging Covid [of which this latest] joint action against NFU for failure to pay out under Business Interruption [is yet another part]. Their cheaper Home and Lifestyle policy paid out for Covid, but the more expensive policy did not [pending the outcome of the litigation][163]
The enduring dispute, which is still (July 2025) before the court and yet to have a trial date or case management hearing owing to extension requests by NFU Mutual, relates to non-damage denial of access cover extensions, on which NFU Mutual has asserted "[t]his extension [only covered] losses due to closure or restricted access by authorities following a specific incident or occurrence happening",[164] explaining they thought they had sold cover only for events like a "bomb scare or a gas leak or a traffic accident".[165]
Following the appeal to the UK Supreme Court (delivered January 2021[166]) NFU Mutual published a statement saying it continued to feel it had no liability to meet claims for COVID-19 related business interruption.[167] However, following the UK Supreme Court's judgment, the FCA sent a "Dear CEO Letter" on 22 January 2021, which 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.[168][169][170]
Also following the Supreme Court judgement, 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.[171] 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.[172][173][174]
Allegations of Strategic Delays and Ongoing Litigation
Over the last half-decade, NFU Mutual has faced persistent allegations of unethical and strategic delays in settling COVID-19 related business interruption claims.
As early, March 2021 an article had 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.[175]
This concern is echoed in Parliament; in June 2025, MP Helen Morgan again raised concerns in Parliament regarding NFU Mutual's progress in implementing the Financial Conduct Authority's recommendations from its January 22, 2021 "Dear CEOs" letter. This came in the six year since the pandemic began, and after NFU Mutual had repeatedly requested litigation suspensions, resulting in no trial date being set. Morgan posed a written question to the Chancellor of the Exchequer in the House of Commons, asking HM Treasury to comment on the:
"adequacy of the progress of... NFU Mutual... in implementing the recommendations.".[176]
Responding for the government Treasury minister Emma Reynolds MP said:
"Under FCA rules, insurers must treat customers fairly. For example, the FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. The FCA has robust powers to take action against firms that do not comply with its rules."[177]
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[178] with the Penningtons claimants filing their claim.[179] 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),[180] in the event that case largely went against NFU Mutual's position.[181] 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.[182][183]
- 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.[184] 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 [treated] it’s important that all businesses receive adequate compensation for the losses they incurred.".[185] Court filings show a defence was filed for the Barings group action by NFU Mutual on 17 March 2025,[186] and the claimants' reply was filed on 23 April 2025.[187]
There are also reports that "More businesses have applied" to join the claims, though NFU Mutual has told the press the litigation is being brought by "only a small number of customers."[188]
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";[189] with the average claim per policy in the Penningtons action standing at £392,086[190] the total potential exposure is estimated to be in the billions of pounds.
Reputational Impact and Policyholder Sentiment
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 [will] have to work to renew trust with certain customers [who may have been let down], it will be challenging this is going to run and run ... if [the issues around policies we have sold have put policyholders] into incredibly difficult positions or even administration, nothing is going to put a smile on [their] face.[191]
Turner accepted that policyholders not receiving business interruption payments could impact their welfare and mental health in this same podcast.[191] 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.[192]
The significant resentment among policyholders regarding these repudiations of cover is evident through their direct testimonies. One affected policyholder articulated their frustration, stating:
"They have quite happily taken the premiums for the last 15 years but the one time I need it I'm not going to get any help off them. It's disgusting that the insurance industry is allowed to do this.":[193]
This perspective is reinforced by another impacted policyholder who, commenting on their experience with NFU Mutual, noted:
[i]n 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.[194]
In 2022, the Financial Reporting Council reviewed the accounting practices of NFU Mutual relating to there being no disclosure in the accounts about these matters, 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".[195]
Overall, while NFU Mutual, as a shareholder, advocated for clear reporting on public funding's impact on other businesses and for shareholders to 'better assess... related risks' concerning COVID-19 transparency and risk assessment,[196] its own approach to managing pandemic-related financial impacts, including drawn-out litigation and changing positions, presents a contrasting record.
Using Covid-19 Grants to reduce own liabilities
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[197][198]
The Professional Association of Self-Caterers also noted:
[NFU Mutual] were the last major insurer to keep deducting Grants from pay-outs.[163]
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'.[199]
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[200] 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'.[201]
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.[202]
Journalistic underinsurance investigations: unsafe practices encouragement and undervaluation
In 2025, allegations emerged concerning the sincerity and appropriateness of NFU Mutual's use of underinsurance terms to reduce liability, with media attention being brought to a pattern of disputes regarding underinsurance claims by farmers came under scrutiny. This was initially highlighted by the case of Northern Ireland dairy farmer Gary McConnell.[203]
NFU Mutual initially offered McConnell £18,000 for £55,000 in Storm Eowyn damages, despite his long-standing policy. McConnell expressed "disgust and anger," asserting the insurer had themselves assessed his property as to sums insured. After he contacted media and his MP, Jim Allister, NFU Mutual made a U-turn,[204] paying the claim in full.
Following McConnell's public statements, which included "revelations that other farmers were experiencing similar issues," an investigation reported by the FT Adviser noted that other farmers in Northern Ireland came forward.[205]
NFU Mutual apologised,[206] stating they "believed it was the correct decision given our understanding of the situation at the time." However, once they investigated inconsistent information concerning the completion of building works, and Mr McConnell confirmed the building was "practically completed before the policy was taken out," they offered a Waiver of Underinsurance. McConnell, criticising the insurer's attempt to blame him for underinsurance, stated he was "done" with them.[207]
Further drawing attention to these issues, a Derbyshire beef farmer, David Hunt, also publicly disputed an NFU Mutual storm payout. In December 2024, nearly half the roof of Hunt's Dutch barn, which housed cattle and hay, was ripped off in a storm. Hunt reported that his local NFU agent initially suggested keeping the claim away from NFU Mutual head office to avoid their involvement:
My local NFU agent came out and initially said we need to keep this claim ‘under the radar’, which I later found out to mean keep it under £4,000, so the agent could handle it himself.
The agent also allegedly advised Hunt to find a neighbour with a telehandler and "offer him a ‘drink’ to come and pull down the remaining pieces of the roof." Hunt firmly rejected this as dangerous practice, stating:
I thought this was quite incredible and told him no way would I do that as it could be putting our safety at risk.
Despite receiving repair quotes at the level of £32,000, NFU Mutual initially offered the policyholder "a mere £4,800," which he claims he was "strong armed" into accepting.
Hunt, a long-standing customer of over 20 years paying thousands annually for his policy, is demanding a review of the offer.[208]
As of July 2025, the journalist who broke these stories has stated these two reports are only instalments of further such reports.[209]
Reliance on non-existent legal advice to policyholder detriment
The Financial Ombudsman Service (FOS) found that a customer's claim was delayed because NFU Mutual incorrectly stated the claim had been referred to counsel who had advised it lacked 'reasonable prospects of success.'
NFU Mutual had sought to rely on a prospects assessment referring to a counsel's opinion that did not exist, the FOS determined. The FOS concluded it 'was not reasonable for NFU Mutual to do that.' NFU Mutual paid compensation for the inconvenience caused, with the FOS noting its role was not to punish NFU Mutual and that the company, being a limited company, could not be compensated for distress.[210]
Denial of service based on profession
NFU Mutual's underwriting practices came under public scrutiny following a 2018 report that Daily Mail features writer Guy Adams was allegedly refused home insurance due to his profession as a newspaper journalist. Adams claimed he was informed that journalists were now classified as "public figures," a categorization also applied to some Members of Parliament, leading to refusals of coverage. NFU Mutual acknowledged that it had previously declined applications from "some members of the media". Adams criticised the refusal as "extraordinary discrimination," expressing concern for journalists' ability to secure insurance if similar policies were widely adopted by other providers.[211]
Further and other issues
In 2019 protests against badger culling were undertaken at the head office.[212]
In 2019, errors by NFU Mutual, in failing to properly record insurance a customer had taken out, resulted in a customer having a £200,000 car seized and their customer facing criminal charges.[213]
References
External links
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