ENGAGE Mutual has recorded its best ever year end results, finishing 2010 with a surplus of £36 million.

The Harrogate-based friendly society, which provides life insurance, savings and health cash plan products, said it had grown customers by 7 per cent to nearly 470,000, mainly by two acquisitions, which accounted to three quarters of this growth.

The acquisition of healthcare provider, PHSA nearly doubled the premium income of Engage Mutual’s health business, adding £1.5 million a year, and 7,000 new customers.

And buying part of the long term insurance business of Ecclesiastical Life Limited (ELL) added more than 15,000 new customers and £270 million of assets.

Its health business, launched in 2008, also achieved its first operating profit.

​Gross premiums for the year were £61 million, a 15 per cent rise on 2009, net of reinsurance.

Its assets under management increased by 52 per cent to £946 million.

The mutual said it had also increased capital to more than three times the regulatory capital ​requirement.

Chief executive, Andrew Haigh, said: “Solid growth, backed by two successful transactions meant that, despite wider economic uncertainties, we concluded the year in a position of significant financial strength.”

The mutual paid out more than £75 million in life insurance ​claims,​ healthcare benefits and maturing savings and investments to its ​customers.