NFU Mutual is a UK insurance composite. It is a mutual business, therefore policyholder members own the business,[6] and the executives and directors are accountable to them directly and not to shareholders. The full name of the organisation is National Farmers' Union Mutual Insurance Society Limited.[citation needed]
NFU Mutual was founded in 1910 in Stratford-upon-Avon, Warwickshire, by seven farmers as the Midlands Farmers' Mutual Insurance Society Ltd.[10] Established in the wake of the National Farmers Union's formation in 1908, the business initially served exclusively farmers' union members.[11]
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.[10]
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.[10] 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.[11][10] Ralph Chisholm, who would later become the first CEO, joined during this pivotal period.[10]
Church Street Stratford-upon-Avon: site of early Head Office
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.[10] This location served as the Society's headquarters for over 60 years until its relocation to the current home on Tiddington Road in 1984.[10]
The company continued its expansion in the 1920s and 1930s. NFU Mutual became the official insurer of the NFU of Scotland in 1922.[11] A subsidiary named Avon Insurance was established in 1925 to provide insurance products to non-farming customers.[11] 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.[10] During the 1930s, NFU Mutual also developed a film unit for marketing promotion, producing silent films that used staff as actors.[10][11]
By 1940/41, NFU Mutual had grown to over 100,000 policyholders, with an income of £1 million and assets of £2 million.[10] Assets continued to increase, reaching £50 million in the 1960s, though a major foot and mouth outbreak in 1967 temporarily halted new related business.[citation needed]
The Village of Tiddington - home to the NFU Mutual Head office
New head offices, designed with environmental considerations, were built in Tiddington in 1984.[12] By 1985, approximately 70% of NFU members were also customers of NFU Mutual.[11] The late 1980s and early 1990s saw significant claims from exceptional storms, costing £30 million in 1987 and £58 million in 1990.[10]
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.[citation needed]
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.[10]
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.[13][14] 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."[15]
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.[10] In 2007, a series of floods brought more than 13,000 claims, representing a liability close to £100 million.[10]
During 2003-2004, NFU Mutual was identified in a Money Management magazine study for penalizing loyal customers with with-profits policies. Unlike typical practice, the insurer reportedly offered lower pay-outs to policyholders who held their policies to maturity compared to those who surrendered early, with customers effectively "paying" £3,003 for staying for their full 25-year term. This practice was highlighted as "breaking faith" with long-term investors.[16]
Lindsey Sinclair, CEO of NFU MUTUAL until 2021
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.[17]
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.[18]
In March 2021, Nick Turner became chief executive.[20] 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.[21] He also served as President of the Chartered Insurance Institute[22] and the Personal Finance Society.[23]
In 2022, NFU Mutual faced significant claims, including around £100 million due to a surge in farm fires[24] and over 20,000 claims totalling £170 million from Storm Arwen (2021) and Storms Dudley, Eunice, and Franklin (2022).[25] The company's 2022 Annual Report noted a "Principal Risk and Uncertainty" regarding significant changes in the customer base.[26] Following the 2022 invasion of Ukraine, NFU Mutual announced it would divest its Russian holdings.[27]
The period from July to December 2022 saw NFU Mutual report over 5,000 complaints, representing 3 complaints per 1,000 policies.[28] 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.[29] That same year, NFU Mutual won several industry fraud awards.[30]
In 2023, the business apologised to a third-party couple whose garden and swimming pool had been destroyed by a member's buffalo herd.[31] 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.[32] Also in 2024, a woman was successfully prosecuted by City of London Police for a £500,000 fraud against the business.[33] 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.[34]
Looking to early 2025, NFU Mutual announced plans to expand its presence in the high net worth market.[35] In May 2025, gay, lesbian, transgender and queer members of staff marched in Birmingham Pride under NFU Mutual's 'Mutual Pride' banner.[36]
Financial performance
The business reported Group profits of £360million in 2024 with total funds under management of £20.9bn.[37]
The Group made a profit of £164million in 2023, when total funds under management were £20.2 billion.[38]
The business experienced a period of underwriting losses for five consecutive years leading up to 2012.[40] 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.[37]
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.[37]
Mutual Investment Bonus
NFU Mutual shared a £71m Mutual Investment Bonus with eligible With-Profits customers in 2024. Mutual Investment Bonus is applied as an uplift to investments, representing a 1.85% increase in investments for 2024, and is in addition to the annual bonus provided to customers that receive one.[41]
As a mutual with no shareholders, eligible customers who invest in the With-Profits fund benefit from the success of the fund and its financial strength, reflecting the current and expected economic conditions. Over £207m has been added to investments of eligible With-Profits customers through Mutual Investment Bonus over the past five years.[41]
Mutual Investment Bonus will remain at the increased rate of 1.85% from 2025. This means that by the end of 2025, the fund will have benefited from an additional 7.6% return over a five-year period due to the Mutual Investment Bonus.[41]
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.[44]
There are around 900,000 members of the NFU Mutual.[45] 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".[46]
Under NFU Mutual's articles of association,[47] 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.[48] The AGM has generally been held at the British Motor Museum at Gaydon, Warwickshire and is open to all policyholder members.[49] In 2024 it was moved to a Leonardo's Hotels venue off the M69,[50] and in 2025 the venue was transferred to the head office building in the village of Tiddington.[51]
Jim McClaren, chair of NFU Mutual since 2019
Senior leadership team
Board members "are responsible for the overall direction of the Company and setting the Company's values and standards".[52] As of autumn 2025, it consisted of the following people:
Jim McLaren MBE (chair),[53] a farmer from Scotland
Richard Morley (Finance Director),[55] 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[56] (Customer Services Director), a former head of compliance
Nick Watson[57] (Sales & Agency Director) joined NFU Mutual from AXA[citation needed]
On 1 April 2023 Elizabeth Buchanan joined the board of NFU Mutual as a non-executive director,[65] however, she resigned just over 6 months later.[66]
NFU Mutual's current Group Head of Legal and Company Secretary is Sian Johns,[67] who took over from Jim Creechan [68] during 2024.
Bev Mitchell is Marketing and Digital Director and Kenny Graves is HR Director. Gina Fusco, and Trisha Jones[69] lately held these roles respectively.
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.[70]
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.[71]
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.[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 2024, the business invested £50m into green or sustainable bonds, with £26m of this in gilts. At the 2024 year-end their aggregate holdings of green bonds were £350m of which £85m were gilts.[74]
The architect-designed NFU Mutual head office building
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."[75]
In 2023 and 2024, the business published a Climate Change Report and in 2024, they published a Climate Transition Plan detailing how they would become a Net Zero company by 2050.[74]
Relationship with farming unions
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.[37]
NFU building, Stoneleigh Park
After becoming the official insurer of the National Farmers Union of England and Wales (NFU) 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.[10]
A large number of NFU Presidents have been directors of the Mutual, including:
Up until 1940 the venue for NFU Mutual's monthly Board meetings was the NFU's headquarters in London.[10]
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.[10]
Today, the Board consists of three farmers, with nine non-farming directors with a background in financial services.[76]
In evidence given to Parliament, NFU Mutual has stated that it has between 65% and 75% of the UK farm insurance market,[77] a figure it repeated in the press in 2025.[78]
Union Advantage
NFU Mutual's Union Advantage offers enhanced cover and discounts to farming union members who commit to insuring their farm with NFU Mutual for the next three years or more.[citation needed]
Agency Network
The majority of NFU Mutual insurance policies are sold through tied insurance Agents (said to be self-employed), who are also Group Secretaries of the NFU, based in market towns and rural locations around the UK.[10] At the end of 2018, NFU Mutual had 654 agents working out of 310 offices,[79] dropping[80] to around 280 agencies in 2025.[81]
Operations
Services and products
NFU Mutual offers personal and commercial insurance for businesses.[82][83] They specialise in agriculture and farm insurance.[83] They also offer life insurance products, and income protection through Aviva.[84] The business also offers various investment and pension products, and sells financial advice and inheritance tax planning.[85]
Member forums
NFU Mutual opperates Regional Advisory Boards made up entirely of members. These meet with the Board and senior management, are briefed on the Group's performance, and provide feedback.[86]
There are seven advisory boards, four in England, and one each in Scotland, Wales and Northern Ireland. They meet twice a year with Directors.[86] NFU Mutual also has an online customer panel called Mutual Voice which they use to gather customer views on products and services.[86]
Property dealing and development
In 2021, NFU Mutual bought a unit near Milnrow for £27 million,[87] and also committed to spending £100 million on six sheds near Clowes.[88] Also in 2021, NFU Mutual's plans to invest in a warehouse in Witney attracted over 190 objections.[89] 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.[90] 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.[91][92]
In March 2022, plans were announced to build a speculative £34 million shed in Staffordshire.[93] Work has since begun on the shed.[94] In April 2022, a shed was traded with Valor for £50 million.[95]
In July 2022, NFU Mutual sold eight warehouses to American-based investment firm Barings LLC for £234 million[96] and the negotiations were described as "contentious" when the deal completed in 2023.[97] 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.[98]
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.[99] A 325 rental-home unit neighbourhood in Liverpool was funded with NFUM capital and loans and opened in late 2022.[100] It is reported to be the UK's largest build to rent project.[101]
In May 2023, it was revealed that the business was to sell another £90 million worth of real estate assets.[102]
NFU Mutual liquidated retail assets in London in 2023; 24 Old Bond Street was sold for £141 million;[103] 3/5 Bond Street was sold for £151 million.[104]
In 2024, the business spent £20 million on another office building.[105]
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.[106] It also confirmed it was closing part of its office accommodation in its Stratford headquarters territory.[107] It also disposed of over £100 million of logistics assets in an off-market deal.[108]
In July 2025, a 476-home rental neighbourhood in Edinburgh was completed following investment from NFU Mutual and partners.[citation needed]
The business lists the following active subsidiaries:[109]
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.[citation needed]
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.[citation needed]
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.[citation needed]
NFU Mutual Select Investments Limited: (No. 8049488) Authorised by the Financial Conduct Authority. Financial Services Register number 582519[citation needed]
Risk Management Services: NFU Mutual Risk Management Services Ltd. is a health and safety company set up in 1997.[110] NFU members receive a discount on some Risk Management Services through Union Advantage.[111]
Islands Insurance
NFU Mutual acquired the Islands Insurance Group in 1987, providing access to NFU Mutual products for customers in the Channel Islands.[112] Employing more than 70 staff in offices in Jersey, Guernsey and Alderney, it offers insurance, broking, and financial advice.[10]
Avon Insurance
Avon Insurance was established in 1925 to provide insurance to non-farming customers.[113][11] It began life as the Farmers Commercial Insurance Company before being renamed.[10] 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".[10] Business increased in the 1970s at 25–30% each year, and Avon opened an underwriting room near Lloyd's insurance market in 1977.[11] In 1975, Avon became one of the first companies to introduce index-linking of sums insured to protect customers against inflation.[11] Avon closed to new business in 2013.[114]
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.[citation needed]
NFU Mutual signage for a campaign
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.'[115]
In the past 24 years the independent charity has distributed funds averaging around £250,000 per year.[116] Since it was founded, the Trust has donated more than £9.7million towards causes included education, research, social welfare and poverty relief.[117]
In 2025, the insurer pledged £1.2m to the Charitable Trust.[117] Donations included a travel scholarship for six young Welsh farmers.[118]
Farm Safety Foundation
In 2014, NFU Mutual set up the Farm Safety Foundation, an independent charity. It is concerned with education of young farmers,[119] as well as eliminating avoidable deaths and addressing mental health issues.[120]
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.[117]
Agency Giving Fund
An NFU Mutual agency in Usk. One local office of over 295 nationally.
First launched in 2020 in response to the Covid-19 pandemic,[121] NFU Mutual mandates an agency giving structure where local offices distribute a portion of a central fund to charities in their local communities.[122]
The fund will be donating £2.33m to local front-line charities in 2025.[121] This is an increase from the £1.92m it donated to charities in 2024.[123] Recipients include charities providing emotional and social support, like community cafes,[123] horse riding clubs for the disabled, and out-of-hours blood bikes.[124]
NFU Mutual donated £7,899 to the Dumfries and Lockerbie Society as part of its 2025 Agency Giving Fund.[citation needed]
Covid-19 Support
In 2020, NFU Mutual announced a £32 million "support package" for customers, agencies, and communities affected by the Coronavirus pandemic.[125][126] However, a detailed breakdown of this package indicated that its majority comprised revisions to policies and internal allocations, rather than the implied direct cash disbursements, specifically:
£24 million (75% of the package's stated value) comprised revisions to existing policies, such as adjustments to coverages or inclusion of COVID-19 in personal accident policies, rather than direct cash pay-outs.
£5 million (approximately 15.6%) was allocated internally to their own agency offices.
The package also included £1.8 million (approximately 5.6%) in widely publicized direct charitable donations[127]
NFU Mutual also supported the Covid-19 Support Fund, a fund established by the insurance and long-term savings industry alongside the Government, but the scale of its contribution has not been disclosed.[128]
The business issues an annual Rural Crime report based on estimates from its claims data.[129] The 2025 report revealed that rural crime cost the UK an estimated £44.1million in 2024, down from £52.8m in 2023.[130] 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.[130] NFU Mutual hosted a joint-parliamentary reception with the NFU on the subject in 2025 which was attended by Policing Minister Dame Diana Johnson.[131]
Farm Shop Theft
In 2025, NFU Mutual's research found that 67% of rural retailers suffered from crime in the past 12 months, prompting the rural insurer to issue a warning for owners to take preventative measures to try and deter thieves.[132]
Tool Theft
According to research by commercial insurer NFU Mutual, one in 20 tradespeople have considered leaving the industry due to repeated thefts, while one in 15 know someone who has already quit because of the problem.[133] Nearly three-quarters of those surveyed reporting they had been victims of theft in the past year.
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.[134] In response to those figures, NFU Mutual launched a Code for Countryside Roads to help motorists use rural roads safely and respectfully.[134][135]
Responsible Business Report
Since 2016, NFU Mutual has produced an annual responsible business report which the company states tracks progress on 'how we care for our members, our communities, our people and the environment.'[136]
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.”[137]
NFU Mutual were also shortlisted for the Which? 2025 Customer Service Brand of the Year award.[138]
Employer Awards
NFU Mutual was the 17th best place to work in the UK in 2024 according to Glassdoor.[139] This was an increase from 43rd in 2023.[140]
The business won the Gallup Exceptional Workplace Award for a tenth successive year in 2025.[141]
Agency Awards
NFU Mutual's Agency in the New Forest, Isle of Wight and Bournemouth has been given three awards in once year. The agency was recently named the winner of the Isle of Wight Countryside Business of the Year, a distinguished award that celebrates businesses that make a positive impact on the local countryside and rural economy on the Isle of Wight.[142]
Sir Basil Brooke, prominent early directorLord Curry of Kirkharle, a former chairman
A former chairman of NFU Mutual is Lord Curry of Kirkharle.[10] He was appointed a director of NFU Mutual in 1997, and was Vice-Chairman before being elected Chairman in 2003.[10]
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.[146]
NFU Mutual was involved in a winding-up petition that concerned Quay Street Limited in a 2020 UK Companies Court case.[147]
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."[148]
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.[149]
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.[150]
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.[151]
NFU Mutual has been a defendant/party[152] in a number of contested cases where anonymity orders have been sought:
TXX -v- DLL, National Farmers’ Union Mutual Insurance and others[156]
NFU Mutual also currently has a live dispute about land ownership before the court.[157]
Controversies
Frauds
In 2011, employee Gordon Murray was jailed for three years for his fraud on the members of £400,000.[158][159]
In 2018, Iain Wishlade also an NFU employee, was jailed for over two years for submitting a fraudulent payment request from his business LDK Ltd to NFU Mutual.[160][161]
There have also been periodic frauds on the NFUM by its policy holder members.[162] The most serious of these saw the perpetrator jailed for 20 years following the arrangement of an explosion which injured 81 people.[163]
When the coronavirus pandemic emerged (December 2019[164]) and subsequently triggered lockdowns (March 2020[165]), NFU Mutual initially said it was not going to respond to any Business Interruption claims on policies.[166] Immediately (April 2020) NFU Mutual customers questioned the integrity of the insurer's position on business interruption in evidence to the House of CommonsTreasury Select Committee.[167]
However, policyholders disputed NFU Mutual's position, which has been repeatedly retreated from. NFU Mutual, however, subsequently invited policyholders to claim for cancellation of advanced bookings coverage and did accept some claims under its Home and Lifestyle policies.[168]
The dispute 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",[169] explaining they thought they had sold cover only for events like a "bomb scare or a gas leak or a traffic accident".[170]
Following an appeal to the UK Supreme Court (judgement handed down January 2021[171]) NFU Mutual published a statement saying it continued to feel it had no liability to meet claims for COVID-19 related business interruption.[172]
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.[173][174][175]
Following the Supreme Court judgement, a number of policyholders announced they intended to bring group litigation against NFU Mutual for which they instructed Penningtons Manches Cooper LLP.[176][177][178]
The impact on policyholders has been covered in the news and in parliament.[179][180][181][182]
Class actions being brought against NFU Mutual include:
South Farm Limited and others v. The National Farmers Union Mutual Insurance Society Ltd (CL-2024-000309). NFU Mutual a filed a defence in January 2025 in the High Court, there have been further delays, a hearing has been reported for December 2025.[183][184]
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.[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]
The situation has exposed NFU Mutual to criticism and caused it to express regret and concern. In a Chartered Institute of Insurancepodcast 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.[188]
Turner accepted that policyholders not receiving business interruption payments could impact their welfare and mental health in this same podcast.[188]
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.[189]
Covid-19 Grants
In July 2020, NFU Mutual vehemently rejected the "accusation it misbehaved by deducting government grants from payouts," specifically regarding the value of government grants from coronavirus-related business interruption claims.
However, 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[190][191]
The Professional Association of Self-Caterers also noted:
[NFU Mutual] were the last major insurer to keep deducting Grants from pay-outs.[192]
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'.[193]
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[194] 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'.[195]
Underinsurance Disputes
Northern Ireland dairy farmer Gary McConnell's case against NFU Mutual was covered in the news in 2025.[196] The insurer apologised, stating they "believed it was the correct decision given our understanding of the situation at the time," but later offered a Waiver of Underinsurance after investigating inconsistent information regarding the completion of building works.[197]
Following McConnell's public statements, other farmers in Northern Ireland reported similar issues.[198] Further attention was drawn by Derbyshire beef farmer David Hunt, who publicly disputed an NFU Mutual storm payout in December 2024. Hunt reported that his local NFU agent initially suggested keeping his claim "under the radar" to avoid head office involvement and advised a dangerous method for roof removal.[199] Despite repair quotes of £32,000, NFU Mutual initially offered Hunt £4,800, which he claims he was "strong armed" into accepting. Hunt, a long-standing customer, demanded a review.[200]
In response to the criticism, an NFU Mutual spokesperson stated that the criticisms were "a fundamental misrepresentation of our business," asserting their pride in being the UK's leading rural insurer providing cover to three-quarters of the country's farms. They also noted their mechanisms for agent feedback. This statement about their market share was made in the context of their public response to the ongoing disputes.[201]
FOS decisions
In a late 2024 Financial Ombudsman Service (FOS) published a decision (DRN-5116602), where it was found that beyond the direct financial losses incurred from a business interruption claim, the complaint highlighted significant unquantified impacts on a family-run business due to NFU's handling.
The initial incorrect decline and subsequent delays, led to severe financial distress, including an inability to pay bills, damaged credit ratings, and court actions (CCJ). This all demonstrated that the consequences extended far beyond monetary damages and profoundly affected the mental well-being of the business owners. As a result of these findings, NFU was required to pay compensation for the distress and inconvenience caused by their actions.[202]
The Financial Ombudsman Service (FOS) found that a customer's claim was 'delayed by a month' because of a mistake NFU Mutual made 'saying the claim had previously been referred to counsel who had advised that it didn’t have reasonable prospects of success' when that information was incorrect. NFU Mutual paid £200 in compensation for the inconvenience caused.[203]
Further and other issues
In 2019 protests against badger culling were undertaken at the head office.[204]
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.[205]
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.[206]
References
Victor Head; A Triumph of Hope, The Story of the National Farmers Union Mutual Insurance Society Limited; The National Farmers Union; 1985
↑ "Complaints Data". Reporting Complaints Data to the FCA | NFU Mutual. Retrieved 30 August 2022.
↑ NFU MUTUAL INSURANCE SOCIETY LIMITED v. NAWZAR KHEDIR Committal for Contempt of Court at Birmingham Civil Justice Centre: "Khedir", Neutral Citation Number: [2022] EWHC 437 (QB). Case No: G90BM172.
↑ BANK OF ENGLAND PRUDENTIAL REGULATION AUTHORITY, WRITTEN NOTICE Transitional Measure on Technical Provisions, Reference Number: 2248979 Date: 27 November 2015
↑ NFU Mutual Insurance Association Limited. (2010) Written Resolutions of NFU Mutual Insurance Association Limited. 4 January. Available from: https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/r5ZMhI31qZgREoj7EbXDMOP_4T03eDK7bw0ARhy4Qh8/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3ERQTDQOR%2F20250712%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20250712T152851Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEOP%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCWV1LXdlc3QtMiJHMEUCID0JnTPGFhOQIagOM1%2Fj1m5B65AAfzH7I4zEbXlK4uUjAiEAvkTx%2B4TLRHaxFoCaQpayAY68yUbiSqLkrMB7V4XXuYwqwwUI7P%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FARAFGgw0NDkyMjkwMzI4MjIiDJ%2BsZdoJnXdTZ%2BJfRCqXBY3owcS00F90LC4Bh%2F2twzaPgcfR%2BV9uu1Eoy91j4VCRFTwDlh4lhgQQdipjEUBmov02uovAZ3Ufpw9boUKOjyvE8vzTpWiKxRWnAAF5Kq3Hxl%2BIBMAuqZrUwebBIlwoj%2F%2FZTBtWsPS2xkIp%2BAQI9T3I7lSuhC2y19Q1e9XqAsV0ypny%2FpsCb%2FFCe8tHYD98bQNkG3A%2FAj9QwviJifJO8A591D%2BrMA%2FFsHYwAfgKnPbnHSHKV1nQ3sxvmhfA4lERhbklGjQuxmQFYRRP6iEmVkvdlY8Xh%2Btu3COGz4HVdy%2FCpzoKB3xF4I5bWgmIXU0p42sxG7WRXhlX9EueygALo1XdO0Mm2gsH4OaT%2B%2FV7hPmV6CVI2F0Dy%2BQKUjXVyy6yX1EBeK1zxmideGHPX%2F5MqSEFaonIPp%2B8xnZplyF2u%2BMdUe8u0UCVPuM9%2FuYVSx9X%2Be3nlg34crx4I%2B9wglk5AFDK%2F3CDj8OAzDftQFvKKaeCw41hBfNNxOYzax1NT2uzyJZbU5i2OkvZTijAfQrYA7Z2RIBmhYRGBSpj908aAmgIM94mWlfriEJQjupacryXNzGDTig4H1KpRPHMrldieasH9DpM2a%2Fj2doeS%2FGO9F8pxW%2BB%2FLN4r%2F7EYJQ9x%2FcFc56rhluAE%2BNp8LiMniRfEhELhac0%2BHuP0qL7GxKUv7GGtIXWb%2BRhGaq5r%2By%2B0VA1BgJv990NOHL1h68oB8AXxIepqg5Nmyouuwo889vvdc7U6GwgWsBhZyLTd8NbusS4JSzAH8nrU%2Fcvwx8YZjU3Ow7HNKMgA%2FHHcBnis1DnDbCmOfpQmTW%2FS5UlRsDYlE%2Fkc1FgOqYx8ldoJhnEeGWyneF0MHwDZBgVYJf8VvV2E8zl3C%2FHhNeDQjCx9MjDBjqxAfVSu7zDvdV0jmmdSaRebSFrZjPCeTJ21JfYCQGu6RzEgZw%2BYzGOk3AI%2FuRkhjaLy%2F6fsVQVM1HOEyj0NOFuZ5IE1jhkMvJVig%2BBzvoSv75pXjD7elWfzXrhuEwfzO9ds8oUakz7HD%2BQTOj3SlXAMLFfdbXR2XzhyzYJDtqIohYGRJRqayIzeeEWqzDt5eN2bzFPce8a27%2BGVYjAoSXZc3bldd%2F0ri4oHQIZXgpOlSMshQ%3D%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22 [Accessed 12 July 2025].
↑ Financial Ombudsman Service. (2024). Ombudsman decision: DRN-5116602. [Online]. Available at: [Insert specific URL if available, otherwise omit this part] [Accessed: 21 July 2025].
↑ Financial Ombudsman Service. (2023) Final Decision: M v National Farmers' Union Mutual Insurance Society Limited (DRN-4490189).
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£360m profit (2024) [5] 
