Report & accounts
2022

Overview	
4 
Strategic Report	
6 - 17
Chairman’s Welcome	
6 - 7
Chief Executive’s Review	
8 - 11
Chief Operating Officer’s ESG Report	
12 - 15
Strategic Management	
16 - 17
Governance	
18 - 32
Board of Directors	
18 - 19
Corporate Governance Report	
20 - 22
Risk Management	
23 - 25
Directors’ Report	
26 - 29
Board Evaluation Report	
30
Board Remuneration Report	
31-32
Accounts	
33 - 59
Independent Auditor’s Report	
33 - 38
Income and Expenditure Account	
39
Balance Sheet	
40
Notes to the Financial Statements	
41 - 58
Actuary Statement	
59
Society Information	
60
Glossary	
61
Notes	
62 - 63
Contents
3

Overview
95% of members are 
likely to recommend us 
to a friend or relative
£2.7m declared 
in bonuses to 
members
Traditional 
membership 
increased to 12,738
Total number of 
policies increased 
by 3% to 18,978
Including the CTF 
we now have 81,407 
policies and accounts

What our 
members say
Gemma
 This is a lovely company to do  
business with - they pick up the phone! 
Quickly! I know that is so basic, but 
nowadays, a lost art. They are also engaged, 
intelligent team workers who make notes 
on your file and when they say they’ll call 
you back, they do! Amazing. We cannot rate 
them any higher. They are local to the area 
their HQ is in which is lovely and you can 
hear their lovely accents. Great 
 products, and great service.  
Thanks so much. 
Clive Edwards
 The best kept secret in financial 
services?! I have been dealing with 
them again recently - superb as  
always. I’ve only just noticed the 
intention to allow policyholders  
access to online valuations on  
our investments which  
is a brilliant idea. 
John Smith
 I can assure potential  
investers that customer service at 
Sheffield Mutual is second to none, 
they are always very polite as well as 
being knowledgeable. I am always 
happy to reinvest, and have always 
been satisfied with the returns.  
I cannot speak more  
highly of them. 
Our customers say 
Excellent  
4.93 out of 5 based on 407 reviews
5

Chairman’s  
welcome
A warm welcome to all our members to 
our Strategic Report for the year 2022.
The year 2022 has brought its own new challenges, 
which will be discussed within our report. You will 
also see how your Society has adapted and evolved 
to deal with and meet those challenges whilst taking 
advantage of the new opportunities that we have 
identified during the year.
The unusual feature of 2022, from our investment 
point of view, has been the fall in value experienced 
by both the equity and the bond markets. We have 
a diversified portfolio of assets and our commercial 
property portfolio has performed well and we 
invested another £3.5 million in these assets during 
2022. Overall however, we have experienced a fall in 
the value of our underlying investments.
This reduction in value came at a time when interest 
rates began to increase. The challenge, therefore 
has been to continue to provide competitive returns 
for our members in this environment. I am pleased 
that given these challenges we have been able to 
declare our interim rates. I would like to thank all our 
team at Sheffield Mutual; both employees and Board 
members in producing this result.
There are many factors to take into account when 
considering an investment. One element is the 
advertised initial return but there are of course other 
considerations. At Sheffield Mutual we aim to provide 
our members with an attractive investment over the 
long term. We provide an excellent level of customer 
service and a member of our team is always available 
during the day to assist. We know that our members 
value this service from the ratings on our website. 
It is this service which makes us stand out from our 
competitors.
We have continued work over the year on developing 
our website. During 2022 we have been working on 
the construction of the member portal and several 
tranches of that work have been completed. Work will 
continue during 2023. Our objective is to provide a 
website which ultimately gives increased functionality 
to members such as viewing balances, statements 
and updating details.
There have been significant changes over the 
year in our own office property. When 2022 began 
there was not sufficient room at the head office 
to accommodate all of our staff and our Board 
meetings, which were held offsite. I am delighted to 
say we have been able to take an extra floor of space 
in the upper unit adjoining our existing property. 
Over the year works have continued to integrate the 
new space into our existing accommodation. The 
result is a new open plan space for our staff, and 
meetings are now able to take place at head office. 
I do consider that it is important for Board members 
to see our working environment and chat informally 
with our staff. This expansion facilitates that goal.
We have been working over the year to commence 
implementation of the FCA’s Consumer Duty which 
applies to all regulated firms not just mutuals. At our 
September Board meeting we agreed the plan to 
implement this duty and there are key dates during 
2023 that have been earmarked for implementation 
of various aspects of the duty. The main ethos of the 
duty is “to treat customers as you would expect to be 
treated”. This is a principle that as a mutual we have 
always respected and is fully in line with our vision 
to be the UK’s most member focussed and trusted 
mutual society.
Strategic Report

One of my responsibilities is an annual evaluation 
of the Board and all individual Board members and 
executives. Prior to the pandemic I had intended 
to arrange an additional external evaluation by a 
third party but I decided to postpone until we could 
resume face to face meetings. Now that we have such 
meetings I arranged a formal executive Board review 
by Hanover Search who are specialists in Board 
performance. Following this review, I was pleased 
that their overall conclusion was that Sheffield 
Mutual has a strong and effective Board which has a 
focus on members, risk management and regulatory 
observance. There were of course areas highlighted 
where we can improve. I have a working group set up 
for 2023 to ensure that we can further develop our 
Board to take full advantage of the money invested in 
obtaining that report.
We have a new Board member to be appointed at 
our AGM this year. Faye Lageu has been recruited 
and was co-opted at our July meeting, taking on the 
Ambassador for Members and Consumer Champion 
roles. Faye has over 25 years of experience in the 
mutual financial services sector and her expertise 
is in sustainability, risk and corporate governance. 
She has worked internationally with many mutual 
organisations, and I am delighted to welcome Faye  
to our Board.
I will be retiring from the Board of Sheffield Mutual 
at our AGM in June 2023. I have been on the Board 
since July 2014 and I have been Chair since the 2018 
AGM. It has been a privilege to work with Sheffield 
Mutual. It has been an enlightening experience 
working within the mutual sector after over 40 
years in the private sector as a partner in a national 
commercial law practice. There are many skills which 
I learnt from my days in private practice which I 
have been able to use with Sheffield Mutual but 
equally I have learnt many things from working with 
a mutual. It has been very rewarding to see how both 
mutual and commercial organisations can operate 
successfully. 
I am pleased to say that the Board has nominated 
Stuart Hately as my successor and Stuart will take 
over my role after the AGM. Stuart has already 
brought a wealth of investment experience to the 
Board and I know he will be an excellent Chairman.  
I wish Stuart well in this new position.
I would just like to say thank you to all the Board, the 
executives and all the staff for the amazing work you 
do, and it has been the best thing for me to work 
with you.
In 2023 Sheffield Mutual will continue to prioritise the 
interests of you, our members. We will aim to provide 
an exceptional and trustworthy service through 
easy to understand products and with the strongest 
returns possible.
Stephen Hindmarsh 
Chair of the Governing Body 
28 March 2023
 In 2023 Sheffield Mutual will continue to prioritise 
the interests of you, our members. We will aim  
to provide an exceptional and trustworthy service 
through easy to understand products. 
7

We started 2022 with great optimism 
after living under Covid rules for two 
years, but very early on in the year we 
were hit with the news of the war in 
Ukraine, which had a profound impact 
on a number of fronts. The invasion 
led to a humanitarian disaster, global 
energy crisis and food shortages. In the 
UK, living standards have been affected, 
with inflation reaching 9.6% by the end 
of the year, sparking fear of a prolonged 
recession. Inflationary pressures have 
hit many families hard and we’ve spoken 
with many of our members about how 
they’ve been financially impacted. 
Members have understandably queried 
the impact on their savings here at the 
Society. Our staff have been on hand 
to provide reassurance that the Society 
continues to be in a financially strong 
position, through prudent management 
and our mutual ethos. 
The Bank of England base rate dramatically increased 
throughout the year to 3.5% as at the end of 2022, 
with an expectation of a peak of around 4.5% in 
2023 but then a fall back in 2024. This has led to a 
significant shift in the savings market as banks and 
building societies chase to become market leaders; 
a very different landscape from just 12 months ago 
when many high street savings rates were set at 
0.1%. Through our with-profits fund we aim for the 
bonus rates not to fluctuate too dramatically, as 
demonstrated through our historic performance, 
in order to ensure we can operate our long term 
smoothing process effectively. This becomes a 
challenge as competitors regularly alter their rates to 
attract custom but the potential final bonus provided 
on our products assists in boosting overall returns 
given back to our members. We offer a stable rate 
year on year, aiming for better rates than banks and 
building societies over the longer term by smoothing 
out inflation, which is something our members 
appreciate and why our satisfaction and retention 
levels remain high. 
A growing membership base
In light of the cost of living concerns, we offered 
more flexibility in terms of catching up with premium 
payments and have aimed to discuss all options 
available to suit specific needs. After receiving 
feedback we also launched the Whole of Life Plan to 
replace Sheffield Protect, to offer a higher fixed sum 
payment. 
We regularly send out satisfaction surveys and measure 
member retention, providing the following results:
	 -	95% of members are likely to recommend  
us to a friend or relative
	 -	94% of all policies remain open after one year and 
86% of policies still remain open after four years
The Society has achieved growth within its 
membership base and the total number of active 
policies in 2022. This was mainly driven by the success 
of our Investment Bond and Investment ISA. We did, 
however, see a fall in the number of new policies, 
mainly due to a reduced level of disposable income 
for savers when compared with 2021. The following 
tables show how membership has developed in 
recent years:
Year ending
Number 
of members  
(excl CTF)
Number 
of policies  
(excl CTF)
31.12.20
12,258
17,379
31.12.21
12,627
18,498
31.12.22
12,738
18,978
Year ending
Number of 
new members  
(excl CTF)
Number of 
new policies  
(excl CTF)
31.12.20
929
1,927
31.12.21
1,092
2,328
31.12.22
757
1,689
Strategic Report
Chief Executive’s review

Financial performance
We have performed well in a year where we 
have all been affected by rising costs and have 
understandably become more cognisant of our 
finances, checking that our savings are suitable for 
our circumstances. The Society received £17m of 
premium income in 2022. Premium income levels 
were lower than seen in 2021 for a number of reasons, 
but peaks and troughs are fairly common over the 
longer term due to economic trends, as we’ve seen 
historically at the Society.
Subscriptions and external transfers to the 
Investment ISA and Junior ISA generated circa £10 
million (59%) of the total. Our Investment Bond 
and Income Bond received £4.2 million over the 
year, making up around 25% of premium income. 
Contributions to our regular savings products, 
including the Tax-Exempt Savings Plan, amounted 
to £2.6 million and, therefore, accounted for around 
16% of the total. 
The Society’s unit-linked Stakeholder Child Trust 
Fund attracted premium income of £0.63 million 
during the year, made up of transfers from other 
providers and additional subscriptions to existing 
accounts.
Year ending
Premium 
income 
(excl CTF)
Assets 
(excl CTF)
£000
£'m
31.12.20
17,772
141.0
31.12.21
21,656
156.5
31.12.22
17,010
150.7
Year ending
CTF premium 
income
Total assets 
(incl CTF)
£000
£'m
31.12.20
484
183.0
31.12.21
609
206.5
31.12.22
627
201.1
Policy returns and bonuses
The Board declared annual policy bonuses worth 
in excess of £2.7 million for members in 2022 and 
all with-profits bond, ISA and endowment policies 
had their interim bonus rates declared in full. The 
Board also paid terminal bonuses on qualifying years 
for the Investment ISA and bonds opened prior to 
2014, and maintained final bonus rates on maturing 
regular premium endowments.
Contributing to the 
community
As part of the 2022 Charity Award, we donated to 
three charities (The Clothing Bank, Thornberry 
Animal Sanctuary and LimbBo Foundation), with 
almost double the number of public votes we 
received in 2021. Through the popular Community 
Fund we also donated to nine charities, which 
included a family support package at the Children’s 
Heart Surgery Fund, PPE for members of Fareshare 
volunteer team and the S6 Sheffield food bank.
In 2022 employees chose the Children’s Hospital 
Charity as their charity of the year, donating £2,500, 
with further monies raised throughout the year via 
additional employee fundraising. In March we boxed 
up food, medical supplies and clothing to donate to 
Ukrainians fleeing to Poland and in December the 
team collected items to be packaged up and sent to 
the Sheffield Shoebox Appeal.
9

Investments
Many commentators would agree that 2022 was one 
of the worst periods on record for investors. Fears 
that central banks might raise rates too much and 
damage the economy drove equity market prices 
down for much of the year. UK markets had been 
volatile leading up to September 2022 but then the 
former Prime Minister and Chancellor announced 
huge fiscal stimulus, with little detail on how it would 
be funded. Many of the policies announced in that 
‘mini-budget’ were reversed and the subsequent 
Chancellor Jeremy Hunt announced that the country 
would need to “tighten its belt”.
Despite the above factors, which would have been 
felt more acutely across more traditional stocks and 
shares investments which fluctuate with market 
prices, the Society’s rates remained stable. Our 
available capital reduced from £23.8 million to £17.4 
million but remains more than 5 times the required 
minimum capital requirement; thereby maintaining a 
strong financial base. 
The Society’s investment income was £5.8 million 
but after taking account of the unrealised gains and 
losses the overall return on the non-CTF assets for 
the year was -5.9%. With regards to fixed interest 
investments, the numerous shocks to the supply side 
of the economy forced central banks to undertake 
the swiftest hiking cycle in decades, resulting in 
a marked change from almost a decade of a low 
interest rate environment and a significant repricing 
in bond markets. Global equities suffered their worst 
year since 2008. The average U.S. stock fund finished 
the year down roughly 17%, the MSCI World index 
fell by 16% and the UK FTSE 250 fell by 20%. Looking 
ahead, our Outsourced Chief Investment Officer’s 
(OCIO), Russell Investments, assure us that there is 
every reason to believe that both equities and bonds 
should rebound as they have historically done and 
outperform cash and inflation over the medium term.
Our commercial property portfolio, the Society’s 
largest asset type within the pooled fund, achieved a 
positive return over the year at 7%. Location, tenant 
strength and sectoral diversity have been key to 
ensuring the portfolio continues to provide a stable 
return for our members. During 2022 the Society 
purchased a childcare nursery in Kidderminster, a 
Sainsbury’s in Middleton-St-George and completed 
the development funding of the multi-tenanted 
units in Spalding. Three smaller retail units were sold 
during the year. The Society owns 43 geographically 
diversified commercial properties, with a total value 
of circa £49 million. As can be seen by the charts 
opposite we hold properties throughout the country, 
with a higher concentration in regions closer to the 
Society’s heartland. It is also worth highlighting that 
vacancy is extremely low at 1% of the portfolio value. 
Strategic Report
2% 2% 1%
25%
20%
12%
11%
9%
9%
5%
4%
% of property portfolio 
value within each sector
Retail Food - 
Hot Food  
25%
Retail Food - 
Convenience  
20%
Trade Outlet 
12%
Retail - Non Food  
11%
Hospitality & Leisure 9%
Retail - Prof/Services 9%
Retail - Roadside  
5%
Retail Food - 
Supermarket  
4%
Childcare 
2%
Warehouse 
2%
Vacant  
1%
3% 2%
25%
22%
11%
11%
11%
9%
6%
North West  
25%
Yorks & Humber  22%
North East 
11%
East Midlands  
11%
West Midlands  
11%
South East 
& London  
9%
Wales  
6%
East Anglia  
3%
South West  
2%
% of property portfolio 
value within each region

The table above shows the asset split of the Society’s 
investment fund at the end of 2022, with previous 
years’ figures for comparison purposes. This table 
excludes Child Trust Fund investments, which are part 
of a separately managed Unit Linked fund.
Child Trust Fund (CTF) 
maturities
The first CTF accounts matured in September 2020. 
Since then, only approximately 20% of matured 
policies have been paid out / transferred to a separate 
Sheffield Mutual policy, with the rest still held in a 
matured CTF account. One of the difficulties of these 
policies is ensuring all policyholder data is accurate, 
given the long term nature of the CTF, but our CTF 
team has sent communications to all maturing 
account holders and aimed to improve engagement 
to ensure that all savings are handled in line with how 
the policyholder would like their investment to be 
dealt with at the age of 18. All policyholders are urged 
to contact us should their details change or they wish 
to discuss CTF related issues.
On maturity, the policyholder has a number of 
options, including remaining invested with us in our 
adult Investment ISA, claiming the money or keeping 
the money held within a ‘matured CTF’ account until 
they’re ready to decide.
Year  
ending
Number of  
CTF accounts
(Incl. matured)
Fund due to 
policyholders (£’m)
31.12.20
63,077
37.42
31.12.21
62,766
43.35
31.12.22
62,429
43.25
Looking ahead
We have much planned for 2023, including investment 
in our team. Each department will see growth in 
resource, primarily to ensure that our first rate service 
standards are retained as the business grows.
We will be developing our internal systems and 
building a member portal to enable policyholders 
to view policies online, make payments and update 
details. Product development will also be a priority 
to build on the success of our existing offering and 
ensure key features are meeting our members’ needs.
As part of our relationship with Russell Investments, 
we have also been working on a revised Sustainable 
Investing & ESG policy, which we will publish in 2023. 
The Society is targeting a net zero emissions goal by 
2050 for our investment portfolio and will gradually 
transition towards this goal. ‘Sustainable investing’ 
continues to be a hot topic but understandably 
challenged by investors. The more standardised 
and clear regulation is, the more effective ESG 
integration will be. Our Chief Operating Officer has 
also provided a Report on environmental, social and 
governance matters which follows my report.
Consumer Duty is set to be a key piece of regulation for 
the financial services sector in 2023. This requires ‘firms 
to act to deliver good outcomes for retail customers.’ 
We believe that the mutual sector has led the way on 
this front for some time but it does aim to raise the bar 
for consumer outcomes, which must be welcomed.
Our Chairman, Stephen Hindmarsh, will be retiring 
at the June 2023 AGM. I’d like to express my gratitude 
to Stephen for his commitment to the Society and 
particularly for his term as Chairman over recent 
years. The relationship between CEO and Chairman 
is key to any business and is crucial to encouraging 
effective and honest communication between the 
Executive and Non-Executive teams. Stephen’s 
legal knowledge and appreciation of the mutual 
sector will be missed, but as a member I’m sure that 
Stephen will continue to engage with the Society. 
The incoming Chairman, Stuart Hately, has been a 
Board member since 2018 and has been Chairman 
of the Audit & Risk Committee over that time. 
Having worked with Stuart over recent years I’m very 
confident that our new Chairman will continue to 
prioritise our members’ interests and oversee the 
Society’s growth during his tenure.
I’d like to finish by thanking our members. Your 
support and kind words continue to drive our team 
more than any performance target; please continue 
to engage with your Society. One of the few benefits 
of the rising cost of living is that it encourages people 
to be more discerning regarding their finances and 
challenging of the organisations looking after their 
money. Our hope is that our members recognise that 
we support their financial wellbeing and pass on their 
experiences to friends and family. 
Jamie Bellamy 
Chief Executive 
28 March 2023
Asset mix
2022
2021
2020
%
%
%
Property
33.88
33.83
34.85
Mortgages on land and buildings
1.72
1.65
0.74
Listed investments: 
- equities
32.08
26.09
31.08
- fixed interest
28.01
26.99
28.94
- alternative assets
0.84
3.39
2.83
Cash (excluding current account funds)
3.47
8.05
1.56
100.00
100.00
100.00
11

Strategic Report
As a member owned business, Sheffield 
Mutual has had is its members’ best 
interests at its heart for over 130 years. 
The Board sees the treatment of 
environmental, social and governance 
concerns as a continuation of that ethos, 
to ensure that we are doing the right 
thing for our members, the community, 
and the future of the planet.
The 2021 Report and Accounts outlined our initial 
reporting disclosures: following the Taskforce 
on Climate-Related Financial Disclosure (TCFD) 
recommendations. It is intended that over time these 
disclosures will improve and adapt as we learn more 
about the implications of climate change through 
new information and science, and we tackle the 
things that Sheffield Mutual can do to limit its impact 
on the environment. This 2022 report will again look 
at the specific areas of the Society’s impact on the 
environment through TCFD. 
What is ESG?
Environmental, Social and Governance or ESG 
is a set of standards that are not only embedded 
in investing vocabulary but also used to dictate 
business culture and mentality. It is primarily used as 
a tool for socially conscious investors (like Sheffield 
Mutual) to use to help them screen investments 
but is also about doing the right thing and to hold 
companies to account. 
	 Environmental – looks at the controls and 
disclosures an organisation has in place to limit 
its impact on environmental factors.
	 Social – places an onus on how an organisation 
acts within its community, does it do the right 
thing? Does it support the community in which 
it operates, through things like charity and 
community work?
	 Governance – scrutinises an organisation’s 
leadership, such as the diversity, equality, 
inclusionary makeup of the business, including 
the Board.
ESG: Environmental and 
climate change
Climate change risk is seen as one of the biggest 
systemic risks to market stability.
The Society has an environmental impact and 
footprint through its operations: travel, energy 
usage, waste, and water and through our commercial 
property and investment portfolios. The Society 
continues to implement initiatives and policies in line 
with recommendations from the Climate Financial 
Risk Forum (CFRF) and our regulators.
The PRA states that financial risks of climate change 
can be categorised as:
	 Transition risk – is the implications of transitioning 
to a low carbon economy and the impact that could 
have on businesses and investments. For example, 
if an organisation is not seen to be transitioning 
away from polluting activities, then this may have 
an impact on their business, commercials and even 
turn potential investors away.
	 Physical risk – is the actual physical risks caused 
by climate change, such as increased intensity of 
storms, high temperatures or sea levels rising.
	 Liability risk – is the risk of compensation for 
losses being sought in response to physical or 
transition risks from climate change. 
Environmental, Social and 
Governance (ESG) Report

Taskforce on Climate-related 
Financial Disclosures (TCFD)
	 Governance
	 	 As required by our regulators, the PRA and the 
FCA; the Chief Operating Officer is the Senior 
Manager responsible for the financial risks of 
climate change at the Society. It is within their 
remit to ensure that the Board and its sub-
committees discuss climate change implications 
where necessary.
	 	 The Board is presented with climate change risk 
scenarios at least annually by the Chief Actuary. 
These scenarios are produced in conjunction 
with the Chief Executive and the Chief Operating 
Officer. 
	 	 The Finance and Investment Committee (FIC), 
discusses the implications of the financial risks of 
climate change at its monthly meetings. Climate 
change forms a key element of the discussions 
in this sub-committee regarding the property 
and investment portfolios, future purchases, 
and relationship with the Outsourced Chief 
Investment Officer (OCIO), Russell Investments.
	 	 The Chief Operating Officer also represents the 
Society at the Association of Financial Mutuals 
(AFM) quarterly Climate Change Roundtables,  
a forum which they chaired twice in 2022.
	 	 The Board completed various training sessions on 
climate change throughout the year.
	 Strategy
	 	 The Society’s climate change strategy and 
objectives were approved by the Board in 2021 
and were highlighted again as an objective for 
the three year strategy 2022 to 2024. The Board 
continues to meet face to face at least six times 
a year, but the monthly sub-committees are 
conducted virtually, unless the date coincides 
with a face to face Board meeting.
	 	 The Society expanded its office in 2022, however 
work has continued to reduce our overall carbon 
footprint. How the Society calculates its carbon 
footprint was also improved to give a more 
accurate view of emissions. Office operations 
(excluding the new expansion) used 6.04 tonnes 
of CO2e in 2021, this was reduced to 5.35 tonnes 
of CO2e in 2022. 100% of the electricity used at 
the Society is from renewable sources meaning 
the actual CO2e produced is significantly less 
than reported. The Society offset 40 tonnes of 
CO2e through Make it Wild tree planting, and 
also contributed further to plant an additional 
20 trees following the AGM votes. The offsetting 
includes all scope 1 emissions; employees 
commuting to the office and the level which 
would be produced if the Society used a non-
renewable source of electricity: therefore 
offsetting more than the Society’s total emissions.
	 	 Work continues to reduce paper within the 
office, as the development of the member 
portal and website continues. Paper used for 
member correspondence, product literature and 
statements is produced using Forest Stewardship 
Council (FSC) responsible sources.
13

Strategic Report
	 Risk Management
	 	 Climate change has been reported to the 
Audit and Risk Committee (ARC) since 2020 as 
a principal risk through the risk management 
system, allowing climate change risks to be 
monitored and discussed regularly by both the 
ARC and the full Board throughout 2022.
	 	 The Chief Operating Officer presents climate 
related reverse stress test scenarios to the ARC  
at least quarterly.
	 Metrics and Targets
	 	 Climate change metrics are built into the Chief 
Executive and Chief Operating Officer’s annual 
bonus scheme. Carbon offsetting continued 
throughout the year with the planting of trees  
in our Yorkshire heartland.
	 	 Carbon emissions are categorised under three 
scope levels:
Scope 1 – own consumption emissions - The 
Society has been working towards reducing its 
carbon footprint through 2022. All lights across the 
office were replaced, sustainably, with LED lights. All 
team members ensure that all lights, pcs, laptops, 
and monitors are switched off at the end of the 
day. The majority of the electric wall heaters have 
been removed completely, relying on our energy 
efficient systems to maintain workable temperatures 
in the office. The electricity to the office is from a 
100% renewable source and has been since 2017. 
The Society has one pool car which is used only for 
meetings which cannot be held virtually, the vehicle 
has a small eco-friendly petrol engine and fuel 
consumption is tracked and offset annually.
The Society has a target of continuing to reduce its 
scope 1 emissions to reach or get closer to net zero 
over the next ten years.
Scope 2 – indirect emissions - The Society holds a 
property portfolio which is managed directly by the 
Society and the Board. In 2021 the Society started a 
comprehensive examination of its properties’ energy 
performance certificates (EPC) and to work with 
tenants and our property managers, CPP, to produce 
and deliver recommendations. It is difficult to aim for 
a target of a desirable EPC score due to the nature 
of commercial properties and the cost implications 
on our members this could have, however over 
the coming years we expect to see some shift and 
changes being made as we and our tenants make 
eco-friendly changes to how the buildings operate. 
All our team members live locally and a short 
distance away from the office, hence their commute 
has a very minimal impact on our carbon footprint.
Scope 3 – Investment Portfolio - Russell 
Investments as the Society’s Outsourced Chief 
Investment Officer (OCIO) is part of the UK 
Stewardship Code and has been a signatory of the 
UN Principles for Responsible Investment since 
2009. The investment portfolio is targeting a net zero 
carbon emissions goal by 2050. In 2020 the Society 
sold its equity holdings in oil and gas. During 2022 
the investment portfolio continued with no direct 
holdings within oil and gas and excludes companies 
that are significantly involved in coal production.
 The Board sees the treatment of environmental, 
social and governance concerns as a continuation 
of that ethos, to ensure that we are doing the 
right thing for our members, the community,  
and the future of the planet.

ESG: Social
The Social element of ESG refers to the relationship 
Sheffield Mutual has with its stakeholders, its 
community and its people. At the top of the Society’s 
social strategy is charitable activities. The Chief 
Commercial Officer leads this through various 
schemes:
	 The Community Fund – a pot of money to 
support the social needs of the local community. 
In 2022 the fund donated £2,470 to nine charities, 
including: Mencap, Sharewear, Children’s Heart 
Surgery Fund and a local Scout group.
	 The Charity Award – is an annual award for our 
members to nominate a charity to be given the 
chance to be awarded with financial funding and 
an opportunity for the charity to gain exposure. In 
2022 the Society donated £7,500 to three charities: 
The Clothing Bank, Thornberry Animal Sanctuary, 
and LimbBo Foundation.
	 Employee charity of the year – The team at Sheffield 
Mutual select a charity each year, which was The 
Children’s Hospital Charity in 2022. The chosen 
charity is awarded with £2,500. The team raise 
money through various social and event activities 
and they are able to use their time through 
volunteering days to support the charity operations.
	 The Social and Events team organised a collection 
of items to be sent to Ukraine to support those 
escaping the war. 
	 A couple of Board members hold charity 
trusteeships outside of Sheffield Mutual, 
including RSPCA Sheffield and Sheffield 
Hospitals Charity.
	 The Finance and Investments Committee has a 
strategy of acquiring several community based 
commercial properties, such as medical centres 
and childcare nurseries.
ESG: Governance
The Governance element of ESG refers to how a 
business is governed particularly around shareholder 
rights, board diversity and board compensation.
In 2021 Sheffield Mutual introduced two sub-
committees to the Board which are which are made 
up of non-executive directors.
	 The Nominations Committee, which is chaired by 
the Senior Independent Director, is responsible 
for the Board diversity and nomination process. 
It was formed to establish a diverse and inclusive 
Board, including ensuring independence of 
its members is maintained. In 2022 the sub-
committee increased the female representation 
of the Board from 18% to 25%. 
	 The Remuneration Committee advises the Board 
on non-executive, executive and employee 
remuneration based upon extensive research of 
the industry and market.
Paul Galloway 
Chief Operating Officer 
28 March 2023
15

Strategic Report
Business model
Our Purpose: “Prioritising our members’ interests, 
we aim to provide an exceptional and trustworthy 
service through easy to understand products, with 
the strongest returns possible.”
Our Vision: “To be the UK’s most trusted and 
member focussed independent mutual friendly 
society”.
Our core values:
Member
Focus
Fairness
Responsibility
Authenticity
Loyalty
Trustworthiness
The Society provides a range of long-term savings, 
investment and protection policies to meet the 
needs of members and their families, including the 
popular Tax Exempt Savings Plan, which is exclusive 
to friendly societies, ISAs, Junior ISAs, Investment/ 
Income Bonds and the Whole of Life Plan. These 
products are available through the following 
distribution channels:
	 Direct - Online, postal and telephone 
applications, digital advertising, printed 
heartland advertising and newspaper editorials 
	 Social - Member referrals (Tell-a-Friend), 
Advocates, Community Fund, Social Media
	 Intermediaries - Financial Adviser advised and 
non-advised sales and non-advised referrals
The Society seeks to attract members by 
demonstrating higher potential investment returns 
over the life of a policy and aims to retain them 
through a combination of performance, following 
high standards of ethics and principles, and 
delivering consistently high levels of personal service. 
The Society strives to be efficient relative to its 
scale and this is achieved through robust cost 
management. The pursuit of controlled growth 
and consistent investment yields are seen as key 
drivers of sustainability and stability in terms of 
ongoing financial strength. This financial strength 
is augmented by a mutual model, which allows the 
Society to distribute returns to members by way of 
policy bonuses. 
The Society’s key strategic priorities are as follows: 
	 Meet its contractual obligations to policyholders 
	 Deliver higher potential returns over the life  
of a policy
	 Maintain a healthy solvency ratio 
Principal risks and 
uncertainties 
The Board is responsible for determining the nature 
and extent of the principal risks it is willing to take in 
achieving its strategic objectives and the Board seeks 
to adopt a medium to low risk appetite in accordance 
with the scale and nature of the Society’s business. 
It seeks to undertake a structured approach for the 
effective management of risk and aims to employ 
proportionate tools and techniques to enable it to 
deliver its objectives in a controlled manner. The 
principal risks are operational and financial, with the 
latter including solvency risk, market risk, credit risk, 
insurance risk and liquidity risk. The risk management 
framework is explained within the Board’s Report and 
the Board is satisfied that the Society has robust risk 
and governance procedures and sufficient capital to 
deal with a range of risks and adverse scenarios, both 
now and over the business planning period.
Strategic management

Future prospects and  
viability statement
The formal analysis of risks, which is carried out at 
least annually as part of the Own Risk and Solvency 
Assessment (“ORSA”) process, is used to assess 
whether the Board has a reasonable expectation 
that the Society will be able to continue in operation 
and meet its liabilities as they fall due over the 
three-year business planning period. The Board 
believes that three years is an appropriate period 
given the Society’s scale and scope of operations. 
This process, which includes appropriate stress 
and scenario testing, together with the Board’s 
ongoing monitoring of risks and controls, suggests 
that there are no current, emerging or anticipated 
risks which could materially alter the Society’s risk 
profile, strategy or viability in the medium term. This 
assessment is unqualified and based on realistic 
planning assumptions as outlined in the Society’s 
approved business plan.
Strategy and objectives
The Board’s medium term strategy is to grow the 
Society’s business organically at a controlled rate 
and, in addition to developing our various channels 
of distribution, we will continue to remain vigilant 
for new product areas which may complement the 
Society’s core activities. 
We are attracting over two thirds of our new  
business direct from members of the public  
through advertising campaigns, online marketing 
and recommendations. An increasing number  
of new policies are applied for via our website  
(www.sheffieldmutual.com) and telephone.  
We continue to invest in our IT infrastructure, with 
more online member facilities to be introduced  
in due course.
The Society’s with-profits Investment ISA, which 
offers investors a potentially higher return over the 
long term than a Cash ISA but without the risks 
normally associated with a Stocks & Shares ISA, 
is expected to continue to generate a significant 
proportion of our premium income. Intermediaries 
remain an important part of our distribution mix 
and we will retain a focus on maintaining mutually 
beneficial relationships with introducers and  
financial advisers. 
In 2022 we implemented various initiatives and 
policies, in line with recommendations made by 
the Climate Financial Risk Forum (CFRF). Our Chief 
Operating Officer has provided more details on 
pages 12-15.
In line with our history, heritage and ethical values, 
Sheffield Mutual is committed to helping good 
causes in the course of doing business. During 2022 
we donated more than £17,500 to various charities 
and good causes and we have made a commitment 
to maintain our support in 2023. 
 The Board’s medium term strategy is to grow 
the Society’s business organically at a controlled 
rate and, in addition to developing our various 
channels of distribution, we will continue to 
remain vigilant for new product areas. 
17

Board of Directors
Jamie Bellamy 
Chief Executive
Jamie joined the Society in 2014 as Finance Manager, 
became the Finance Director in 2015 and the 
Chief Executive in 2019 and continues to oversee 
the Society’s finance function. Jamie qualified 
as a certified accountant within a large regional 
accountancy firm, assisting small to medium 
businesses and preparing statutory financial 
accounts. Jamie also has experience of working within 
Risk Management at a global law firm. Jamie enjoys 
running and playing a variety of sports and lives with 
his wife, son and daughter in South Yorkshire.
Anthony Burdin 
Non-executive director
Tony joined the Society in 2009 as Chief Executive 
and retired in 2018, leading the Society through a 
period of significant growth and development. Tony 
oversaw a substantial increase in the Society’s assets 
and premium income, whilst delivering market-
leading returns for members. After retiring Tony was 
invited to remain on the Board as a non-executive 
director. He has worked in the mutual sector for 40 
years and has held a number of senior positions in 
the building society and friendly society sectors. Tony 
has a broad base of executive management skills 
and holds professional qualifications in sales and 
marketing. 
Janet Burdin 
Non-executive director
Jan has over 20 years’ experience in the mutual 
financial services sector, having held various senior 
positions in two medium-to-large building societies. 
Jan served as Chairman from 2015 - 2018 and brings 
a wealth of relevant skills to the Board, particularly in 
the areas of customer services, sales management, 
team performance and regulatory compliance. 
Having been semi-retired since 2009, Jan now 
spends her spare time enjoying gardening, walking 
and bowling.
Paul Galloway 
Chief Operating Officer
Paul joined the Society in 2018 as Chief Operating 
Officer and is responsible for Risk and Compliance 
Management, Member Services, Operations, IT, HR, 
managing the risks associated with climate change 
and is the Society’s MLRO. Paul has held various 
management positions in products, risk, governance, 
and compliance at a large building society, as well as 
various roles at a global insurance and pensions firm. 
Externally Paul is the Chair of Trustees for RSPCA 
Sheffield Branch. Paul enjoys music, films, comedy 
and hiking, and lives in South Yorkshire with his 
partner and their three cats.
Stuart Hately 
Chair of the Audit and Risk Committee
Stuart joined the Society in 2019 and has extensive 
investment, risk and control management 
experience. Stuart previously held a directorship at 
Investec Wealth & Investment Fund Managers Ltd 
and was Head of Investment Operations at Royal 
Liver Assurance Ltd and CFO and COO of Royal Liver 
Asset Managers Ltd. Stuart also has friendly society 
experience working as a national specialist with 
KPMG. Stuart enjoys mountain biking, swimming 
and skiing.
Stephen Hindmarsh 
Chairman
Stephen is a retired solicitor with more than 40 years’ 
experience in private practice. His specialist areas 
of practice were commercial property and friendly 
society work. He was elected Chairman following the 
2018 AGM. Stephen also has a role as a volunteer 
with Salford Citizens Advice Bureau. He provides 
general advice on issues arising for their clients and 
also works with their specialist team providing debt 
advice. Stephen is married and they have three sons. 
He is the treasurer of the Manchester Area Cross 
Country League and enjoys cycling, swimming and 
walking. He can also play the piano.
Governance

Faye Lageu 
Non-executive director
Faye has represented the interests of financial 
mutuals around the world, for over 25 years as a 
strategy advisor, bringing extensive knowledge in 
a range of areas from marketing and corporate 
governance to leadership development and claims 
management, but focusing on her key specialisms 
of sustainability and member value. She is also an 
associate consultant working with life and health 
insurers in Europe and the Gulf region; a board 
member for a Canada-based organisation that 
promotes executive education for mutuals; and is an 
external supervisor for MBA students from mutual 
companies. She joined the Society’s Board in 2022 
and is the Ambassador for Members. She is an avid 
walker, yogi, Argentine tango dancer and silversmith, 
and loves live music and theatre.
Courtney Marsh 
Non-executive director
Courtney is a qualified actuary with a rounded 
knowledge of the financial services and insurance 
sector. He consulted for Mercer and Oliver Wyman 
for 12 years with a focus on the mutual space and 
then joined Health Shield Friendly Society as Chief 
Risk Officer in 2010. Courtney went on to hold 
Chief Operating Officer and Commercial Director 
roles before becoming Chief Executive in 2018. 
He now runs his own consulting firm, specialising 
in the health, wellbeing and cash plan arena and 
also works for BHSF Group as Director of Business 
Improvement.
Neil Spawforth 
Chair of the Finance & Investments 
Committee
Neil has over 20 years’ experience as a Chartered 
Surveyor and his knowledge of commercial 
property is of great value to the Society. Neil has 
previously served as a Trustee from 2017 to 2021 and 
as Vice-Chair from 2012 to 2015. Neil is employed 
by Equitix Management Services and is involved in 
the management of various health and education 
projects across Yorkshire and the North of England. 
Neil has been a member of the Society since 2007 
and lives in West Yorkshire, with his wife and their  
two children. 
Adrian Stone 
Non-executive director
Adrian was born and raised in Matlock joining KPMG 
in Sheffield direct from university. He became a 
partner in 1997. He specialised in audit throughout his 
career firstly in Sheffield, then Leeds before spending 
the latter part of his career in London. He’s worked on 
companies of all shapes and sizes and which reflect 
the diversity of the Sheffield and Yorkshire economy. 
He held a variety of leadership roles within KPMG 
from 2004 including the UK Head of Audit from 2015 
to 2017. Since retiring from KPMG in 2018 he has 
become the Chair of the Sheffield Hospitals Charity 
which raises funds for the Northern General and 
Hallamshire hospitals in Sheffield. Adrian is married 
with three children in their early twenties. He is a 
keen gardener, a keen golfer and a long time season 
ticket holder at Sheffield United.
Andrew Thorpe 
Senior Independent Director
Andrew has been on the board since 2019 as a 
non-executive and currently works for Nuance 
Communications as a Solution Architect. Previously 
he was employed by HSBC from 2005-2022, most 
recently acting as their Head of Contact Centre 
Infrastructure for the EMEA region, which involved 
oversight of data security / integrity and supervising 
the migration of telecommunications services 
solutions. IT & Data Security expertise is increasingly 
important within any organisation and Andrew was 
identified by the Board as having the necessary 
knowledge to advise the Society on these areas. 
Dawn Webb 
Chief Commercial Officer
Dawn joined the Society in 2008 and is responsible 
for the creation and execution of commercial 
strategies in line with the business plan and 
ongoing future growth of the Society. Dawn is 
responsible for the leadership of both the Marketing 
& Communications and Business Development 
teams. Dawn has over 25 years’ experience in the 
retail/financial services sector, spending several 
years in a management level role at a large UK 
bank before joining Sheffield Mutual. Dawn is a 
certified professional marketer having completed 
qualifications via the Chartered Institute of 
Marketing. Dawn is a keen birdwatcher who loves 
nature and spending time with her husband and 
their two dogs.
19

Principle
How SMFS has applied the Principle
Purpose and leadership
An effective board 
promotes the purpose 
of an organisation, and 
ensures that its values, 
strategy and culture align 
with that purpose.
The Society’s purpose, vision statement and core values (outlined on page 16) are 
agreed annually and were last reviewed in September 2022. The Executive Team 
propose how they expect to achieve the vision, setting out a three year strategy, 
which is monitored by the Board on an ongoing basis. A business plan is prepared 
annually, reflecting on emerging risks and opportunities, and is aligned to the 
overarching strategy. The 2022-24 objectives were amended in July 2022 to reflect the 
external economic circumstances and the changing savings landscape. As a smaller 
financial institution we’re able to adapt fairly quickly, bearing in mind longer term 
targets and our commitments to members. 
A Board effectiveness review was carried out in 2022, with a working group formed by 
the Chairman to set actions and timescales for the recommendations made.
The ethos of the Society has been refined over a number of years and regularly 
discussed with employees during inductions, team meetings and appraisals. To 
maintain our culture for the long-term we aim to empower employees by promoting 
internally where possible.
Board composition
Effective board 
composition requires 
an effective chair and 
a balance of skills, 
backgrounds, experience 
and knowledge, with 
individual directors 
having sufficient capacity 
to make a valuable 
contribution. The size 
of a board should be 
guided by the scale 
and complexity of the 
organisation.
Our Chairman, Stephen Hindmarsh, has significant legal experience and is able  
to draw on this experience to facilitate constructive discussion during meetings.  
A succession plan is in place to replace Stephen as Chairman after the 2023 AGM, 
with training to be provided. The Society has a separate Chairman and Chief 
Executive to ensure that the balance of responsibilities, accountabilities and  
decision making are effectively maintained.
The Board consists of 12 members; three executives and nine NED’s, with each 
member bringing a range of expertise, including property management, legal, risk 
and compliance, sales and marketing and accountancy. All directors have equal 
voting rights when making decisions, except the Chairman, who has a casting vote.
Board members are subject to election every three years at the AGM in accordance 
with the Society’s Rules. 67% of the Board’s members were assessed as independent 
as at the year-end, and therefore in line with the Code guidance. The Nominations 
Committee discuss the Board’s composition of skills and diversity, conscious of the 
long-term nature of the business, and ensure a succession plan is in place.
Internal Board appraisals are carried out annually with written feedback given to 
each Member individually on a confidential basis. The SID also carries out the annual 
appraisal of the Chairman’s performance. The Chairman leads an annual evaluation 
of the Board and its sub-committees.
Training requirements are assessed by the Chairman with the assistance of the Chief 
Executive and Chief Operating Officer throughout the year, to ensure all non-
executives complete at least a minimum of 15 hours CPD. Non-executives are asked 
to attend external seminars and conferences and internal training sessions are held 
and presented by a number of organisations including compliance consultants and 
investment managers. A separate online training facility is also available.
Governance
Corporate Governance Report
Association of Financial Mutuals (AFM) Corporate Governance 
Code incorporating the Section 172 Companies Act Statement
The Society has applied the AFM Corporate Governance Code for Mutual Insurers (the “Code”), which has replaced the 
Annotated Corporate Governance Code. The new Code sets out a series of principles of good corporate governance 
using an ‘apply and explain’ approach, focussing on culture within an organisation and employee and stakeholder 
engagement. The Chairman, supported by the Board, ensures that the Code’s Principles are appropriately and 
proportionately applied throughout the year. Set out below is how we believe we achieve the respective Principles:

Principle
How SMFS has applied the Principle
Director responsibilities
The board and individual 
directors should have 
a clear understanding 
of their accountability 
and responsibilities. 
The board’s policies 
and procedures should 
support effective 
decision-making and 
independent challenge.
All directors and non-executive directors complete an annual fit and proper person 
test to ensure that they are suitable and able to carry out their roles and to provide 
transparency with regards to any potential conflicts of interest. The Board also 
reviews the Management Responsibilities Map on a quarterly basis to ensure that all 
Board members are aware of their responsibilities under the SM&CR and that there 
are clear lines of accountability. 
The ARC enhances independence in communication and oversight particularly 
around the internal and external audit process. The separate Nominations 
and Remuneration sub-committees also improve independence and Board 
accountability. 
Terms of reference are in place for each of the Board’s sub-committees and are 
subject to annual review with any recommended changes submitted for Board 
approval. 
Our internal auditors, RSM, present to the ARC on a quarterly basis. The internal 
audits carried out during 2022 demonstrated that we have effective governance 
arrangements and robust operational resilience procedures in place. The 
Executive Team provide management responses and timeframes for actions to 
recommendations made. The external audit also provides strong assurance to the 
Board and the Society’s members that solid processes are in place to confirm the 
integrity of information provided. 
The Board receives regular reports (at least monthly) from the Executive Team, 
Outsourced Chief Investment Officers, property managers etc. on all key areas  
of the business and its performance.
Opportunity and risk
A board should 
promote the long-term 
sustainable success 
of the organisation 
by identifying 
opportunities to create 
and preserve value, and 
establishing oversight 
for the identification and 
mitigation of risks.
Using the Own Risk and Solvency Assessment (ORSA) report and business planning, 
the Board debates the Society’s risk appetite, carrying out scenario testing and 
identifies how any potential threats can be successfully managed and converted  
into opportunities.
The oversight of the Society’s risks is carried out by our ARC on at least a quarterly 
basis, with the Chief Operating Officer monitoring risks throughout the year via the 
risk register and reverse stress testing. The Society’s key risks are outlined on page 
23-25.
The Society has invested and increased its resources in risk management over  
recent years, with more third party assessments on cyber security, expertise in  
IT security, and further recruitment within the Risk & Compliance team.
Through monitoring risks and identifying how they can be mitigated we are 
invariably able to turn them into opportunities and build them into business 
planning. For example, IT systems are continually improving but can present risks  
if investment isn’t made. 
Due to the changing labour market, several staff members left the Society but we 
used this as an opportunity to restructure our departments, rather than source 
direct replacements. We also saw an opportunity to expand our office site to better 
accommodate our team, to provide the space for further growth and offer a more 
welcoming environment for our members and Board to visit our head office.
Throughout the business there are strict controls in place to mitigate risk, as set out 
mainly within our ORSA, Internal Controls, Board Manual and Compliance Manual, 
detailing approval limits on transactions, user permissions, etc. These controls are 
reviewed at least annually and approved by the Board. 
An audit Assurance Map has been developed to aid debate around areas of risk within 
the business and to better plan for internal audits over the medium to long term.
21

Chairman’s Statement on Corporate Governance
It is my responsibility to ensure that the Society applies the principles of the Code across the business appropriately. 
The Board aims to apply the spirit of the principles of the Code and it is the Board’s intention to adopt the highest 
standards of corporate governance for an organisation of our scale and in the best interests of our members.
Stephen Hindmarsh 
Chairman 
28 March 2023
Principle
How SMFS has applied the Principle
Remuneration 
A board should promote 
executive remuneration 
structures aligned 
to the long-term 
sustainable success of 
an organisation, taking 
into account pay and 
conditions elsewhere in 
the organisation.
Employees and executive directors are remunerated based on market rates and 
bonuses are paid based on the Society’s performance to encourage a common goal. 
Directors’ bonuses include targets linked to the success of the three yearly strategic 
review aligning to longer term success. Executive bonus schemes are linked to 
environmental, social and governance targets to improve executive accountability  
on these issues.
Each employee’s job specification is considered in isolation and an appropriate 
remuneration package designed depending upon the nature and seniority of the 
position. An internal review was carried out on the Society’s bonus scheme to  
make it more focussed on individual and departmental objectives to encourage 
ownership and accountability.
Board remuneration is detailed on pages 31-32. Further to an independent third-
party review and a recommendation from the Remuneration Committee, a revised 
remuneration structure was implemented in 2022.
Stakeholder 
relationships and 
engagement 
Directors should foster 
effective stakeholder 
relationships aligned 
to the organisation’s 
purpose. The board 
is responsible for 
overseeing meaningful 
engagement with 
stakeholders, including 
the workforce, and 
having regard to their 
views when taking 
decisions.
Our team is one of the main reasons our members value being with the Society  
due to the personal service we provide. All employees have pension policies and  
the option to open a Society Pension Plan invested in the with-profits fund or into 
the Aviva Pension Plan.
Faye Lageu has been appointed our NED Ambassador for member engagement  
and Consumer Duty Champion, to regularly monitor feedback from members 
through various avenues and discuss this with the Board on a quarterly basis.
All 21 employees are based at the Tankersley head office. We aim to hold full team 
and departmental meetings on a regular basis. The Executive Team each have 
responsibility for the various departments within the business and are therefore  
very close to operations and have direct daily engagement with employees. 
The Society, in conjunction with the AFM, regularly liaise with our regulators and 
the government to seek improvements to friendly society law. In 2022 the CEO 
contacted HM Treasury and the Executive Team contacted their local MP’s, regarding 
the Co-operatives, Mutual Insurers and Friendly Societies Bill and encouraged more 
awareness around the benefits mutual businesses bring to local communities and 
their members, taking account of the recent failed demutualisation of LV=.
In line with our history, heritage and ethical values, Sheffield Mutual is committed 
to helping charities and good causes. In 2022 we asked members and the general 
public to nominate charities to win a Charity Award, with the top three receiving 
donations of £5k, £1.5k or £1k. Sheffield Children’s Hospital Charity was the 
employees’ chosen charity receiving £2.5k, a charity which helps to create a healthier 
future for children and young people who visit Sheffield Children’s Hospital by 
buying life saving equipment, funding vital research and treatment for patients.  
Also, each year the Society aims to make funds available for donations to smaller 
local charities, community groups and voluntary organisations from the Sheffield 
Mutual Community Fund.
Payments to our suppliers are always within the requested payment period unless 
there are outstanding queries. 
Governance

Risk management
The day-to-day operations of running a mutual 
organisation expose the Society to risk. The Society 
approaches the limiting of risk exposure in several 
ways:
	 The Society operates a three lines of defence 
model for risk management. 
	 The oversight and direction of the Board remains 
central to risk management. The Board has 
delegated oversight of risk management to the 
ARC. The ARC ensures that appropriate policies, 
procedures, and processes are implemented 
across the business to control and monitor both 
the actual and potential risk exposures which 
arise from the Society’s operations.
	 The ARC ensures risks are aligned to the Society’s 
risk appetite and that any unacceptable risk 
exposures are identified and either eliminated or 
where appropriate mitigated.
	 Through the Risk Register the Society has 
identified areas of potential risk and considered 
how they can be either accepted, mitigated, or 
removed. The Risk Register also contains trigger 
points for each risk at which certain management 
actions must be implemented. The Chief 
Operating Officer and Chief Executive along with 
an ongoing assessment of known risk exposures, 
monitor external and emerging risks within the 
Risk Register. The ARC review the Society’s Risk 
Register in detail at least quarterly.
	 The Board reviews the Society’s risk appetite and 
principal risks at least annually, covering areas of 
risk such as solvency, liquidity and operational 
risk.
	 Risks which could threaten the Society’s business 
model are assessed, managed, and mitigated 
through a process known as reverse stress 
testing.
	 The ORSA is also central to the risk management 
framework.
Financial risk management
The Society is exposed to a range of financial risks 
through its financial assets, financial liabilities, and 
insurance liabilities. In particular, the key financial risk 
is that in the long-term, its investment proceeds are 
not sufficient to fund the obligations arising from its 
insurance contracts. The most important components 
of this financial risk are market risk, credit risk and 
liquidity risk. However, the Society also faces financial 
risks in respect of property valuations, concentration 
of investments and counter-party exposures.
Market risk
Market risk is the risk of losses arising from changes 
in the value of assets or in the income from the 
assets. The Society manages market risk so that 
the returns generated are in line with members’ 
expectations and support the Society’s future 
strategic and operational objectives. 
For assets backing member liabilities, market risk is 
managed by matching, within broad parameters, the 
duration and profile of the assets with the underlying 
liabilities. 
The Society’s Finance & Investments Committee 
(FIC) oversees the investment policy and strategy, 
and ensures that the asset mix aligns to the Society’s 
Principles and Practices of Financial Management 
(PPFM). 
In order to mitigate market risk, the Board took 
the decision to appoint Russell Investments as 
the Society’s outsourced Chief Investment Officer 
(OCIO) in 2021. Russell Investments oversee the 
Society’s investment asset allocation taking account 
of capital requirements, investment return required 
and market volatility. They look to choose the most 
appropriate investment managers on our behalf, 
at a significantly reduced cost compared with the 
Society directly approaching the manager, which 
also reduces reliance on one investment managers 
expertise and can offer diversification in additional 
asset classes.
Concentration of market risk
The following tables provide details of the Society’s 
equities (including alternative assets) by region.
Region
%
£
Global Equities
17.94
7,688,591
US
8.04
3,446,610
UK
65.57
28,103,126
Pan Europe ex UK
2.27
972,121
Japan
1.65
706,997
Emerging Equity
4.53
1,944,241
Total
42,861,686
23

Interest rate risk
The Society is exposed to interest rate risk where 
changes in interest rates result in changes to market 
values or cash flows and where this is not matched by 
the change in the value of liabilities. This risk can be 
greater if the term of fixed interest investments is not 
well matched to the term of the liabilities. Members 
of the Society bear most of the market risk through 
the annual bonuses allocated to them.
Credit risk
Credit risk is the risk of loss due to failure by another 
party to perform in meeting its financial obligations. 
The Society adopts a medium tolerance to credit 
risk in support of the Society’s strategic objectives 
and in matching policyholder liabilities. This means 
that modest losses would be tolerated in order to 
secure higher potential returns. The Society seeks to 
minimise other forms of credit risk, in particular those 
related to deposit takers. The Society has taken the 
following steps to mitigate credit risk:
	 bond holdings adhere to minimum credit rating 
criteria i.e. must be mainly ‘A’ rated and above; 
	 defined commercial lending policy with strict 
underwriting guidelines; 
	 counterparty limits are in place for cash deposits.
Concentration of credit risk
The following table provides details of the Society’s 
bonds by region.
%
£
UK fixed interest
50.18%
18,874,916
Overseas fixed 
interest
49.82%
18,739,505
Total
37,614,421
Liquidity risk
Liquidity risk is the risk that the Society, although 
solvent, is unable to meet payments as they fall 
due from cash or near cash holdings. The Society’s 
objective on liquidity risk management is to ensure 
that sufficient funds are available over the short 
and medium term to meet the needs of the Society. 
This includes new business costs, planned strategic 
activities, member withdrawals, claims payments 
and day to day cash flow requirements. Cash flows 
are generally predictable with fixed amounts due 
on fixed dates. Deaths and surrenders are less 
predictable but (under normal circumstances) are 
subject to well established trends. The increase in ISA 
balances may require the Society to hold additional 
liquidity in the future to meet withdrawals, but ISAs 
are regarded as relatively ‘sticky’ investments. 
Any significant mismatch between cash inflows 
and outflows would be identified by the Executive 
Team and this would trigger a Board review of the 
level of liquid assets (particularly cash holdings) and 
the impact on the liquidity situation of writing new 
business.
The Society has a medium tolerance to liquidity risk, 
which means that cash and near cash holdings are 
kept at relatively modest levels so that yields are 
not adversely affected. Liquidity risk is considered 
relatively low given the predictable nature of most 
policy claims. The Society is currently, and for the 
foreseeable future, cash generative allowing it to 
meet the expectations of members without recourse 
to reserves.
Liquidity risk is managed as follows:
	 budgets are prepared to forecast short term and 
medium term liquidity requirements;
	 monthly analysis is provided to the FIC illustrating 
levels of liquidity and trend analysis;
	 assets of suitable marketability and maturity are 
held to meet the member liabilities as they fall 
due; and 
	 credit risk of deposit takers is managed by having 
appropriate counterparty and credit limits in 
place. 
Insurance risk
Insurance risk is the risk of loss due to uncertainties 
over timing, amounts and occurrence of events 
insured by the Society. Insurance related risks include 
mortality risk, persistency risk, taxation, new business 
and renewal expense risk - with persistency risk 
being the main item. The Society has no exposure 
to longevity risk, nor does it have any reinsurance 
arrangements.
The Board has adopted a low tolerance to insurance 
risk by taking a low risk view on product development 
and applying high standards of life underwriting.
The Society manages insurance risk by:
	 a structured approach to product development 
and pricing, including provision for expenses; 
	 a formal actuarial analysis of the performance 
of the insurance portfolio which feeds into the 
development of products and the calculation of 
technical provisions;
	 robust management and challenge of expenses;
	 proactive management of new business flows; 
and 
	 monitoring persistency rates, which are reported 
to the Board at least bi-annually.
Governance

Concentration of insurance risk
All long term business is conducted in the UK 
therefore geographical segmental analysis is not 
applicable.
The concentration of long-term business provisions 
by the type of contract is set out in the table to the 
right. This analysis excludes unit linked liabilities and 
includes an apportionment of the expense reserve.
2022
2021
£000
£000
ISA
81,007
76,869
Investment bond
36,232
36,496
Pure endowments
13,454
15,315
Taxable saving plans
5,617
6,870
Sickness and death
787
975
Endowments
731
813
Other
701
848
Pension bond
139
260
Total
138,668
138,446
Additional business risks
Risk type
Description
Mitigation
Strategy
Strategic risk is the risk of the Society 
entering unprofitable markets or offering 
unprofitable products. 
The Board has a well established strategic 
planning process. The three-year strategy 
is approved by the Board and monitored 
annually.
Operational
Operational risks include risks such 
as systems and controls, governance, 
emerging, regulatory and legal and 
employees risk.
The Society has in place policies and 
internal controls which outline how its 
operational risks are mitigated. The annual 
Operational Resilience Board attestation 
delivers tolerances for these risks.
Cyber
Cyber risk is the exposure the Society 
has to IT and cyber security risks leading 
to detrimental harm to the Society and 
members or losses through data breaches 
or cyber-attacks.
Cyber is an ever evolving risk and high 
on the Society’s risk agenda. The Society 
continues to invest in this area through 
team development and training, IT systems 
and other tools.
Conduct
Conduct risks relate to the ability of the 
Society to conduct its business fairly and 
properly in relation to its members and 
employees.
Conduct risks are monitored through the 
Risk Register and presented to the ARC on 
a quarterly basis.
Member Treatment
The fair treatment of members is at the 
heart of everything the Society does.
Reports are presented to the Board twice-
annually, and individual risks to ARC at 
least quarterly.
Climate Change
Climate change risks include transitional 
and physical risks which may directly or 
indirectly impact the membership.
Climate change risks are monitored closely 
in the Risk Register. Work is ongoing to 
reduce carbon emissions of the Society.
25

Directors’ Report
Responsibilities of the Board
In 2022 the Board comprised of nine non-executives; 
Chairman, Senior Independent Director (SID), seven 
other non-executive members; and three executive 
members (Chief Executive, Chief Operating Officer 
and Chief Commercial Officer). The Chairman 
believes that the balance of skills and experience 
of Board members is appropriate to the current 
requirements of the business. 
The Board determines the strategic direction of 
the Society and reviews its operating and financial 
position. The Board met on six occasions during 
2022 and there is a schedule of regular reports and 
information, which they consider at the meetings 
and which is agreed annually. Reports are provided 
to the Board in advance of each meeting. The Chief 
Executive is responsible for carrying out the agreed 
strategy and the day to day running of the Society 
and there is a clear division of responsibilities 
between the roles of the Chief Executive and 
Chairman.
There are certain decisions that are reserved for the 
Board and these include:
	 declaration of annual bonus rates
	 acquisition/disposal of significant assets
	 succession planning
	 approval of the annual report and accounts
	 approval of the Own Risk and Solvency 
Assessment (ORSA)
The Chairman is responsible for ensuring that 
members of the Board receive accurate, timely and 
clear information in order to discharge their duties 
effectively and the Society’s Secretary is responsible 
for ensuring good information flows within the 
Board and between senior management and the 
Board. The roles of Chief Executive and Secretary 
should ideally be split but the Board is confident that 
it received good information flows, guidance and 
support with the existing position. The Board and 
Sub-Committees can also obtain assistance from the 
Chief Operating Officer, Chief Commercial Officer 
and other employees if required. 
The following statement is made by the Board in 
relation to the preparation of the annual financial 
statements, Strategic Report and Corporate 
Governance Report.
The Board is required by the Friendly Societies Act 
1992 (‘the Act’) to prepare for each financial year 
annual financial statements, which give a true and 
fair view of the state of affairs of the Society as at the 
year end and of the income and expenditure of the 
Society during that year.
In preparing those financial statements, the Board is 
required to:
	 select appropriate accounting policies and apply 
them consistently
	 make judgements and estimates that are 
reasonable and prudent
	 state whether applicable accounting standards 
have been followed, and any material departures 
disclosed and explained in the financial 
statements
	 prepare the financial statements on a going 
concern basis, unless it is inappropriate to 
assume that the Society will continue in business
In addition to the financial statements, the Board  
is responsible for ensuring that the Society:
	 keeps accounting records in accordance with  
the Act
	 takes reasonable care to establish, maintain, 
document and review such systems and controls 
as are appropriate to its business in accordance 
with the rules made by the regulators under the 
Financial Services and Markets Act 2000
The Board also has general responsibility for 
safeguarding the assets of the Society and taking 
reasonable steps for the prevention and detection  
of fraud and other irregularities.
The Board confirms that it has complied with the 
above requirements and considers that the Annual 
Report and Accounts, taken as a whole, is fair, 
balanced and understandable, and provides the 
information necessary for members to assess the 
Society’s position and performance, business model 
and strategy.
Governance

Attendance at meetings
Board meeting and sub-committee meeting attendance during the year is set out below. The number of meetings 
that each director could have attended is shown in brackets.
Board
FIC
ARC
NC
RC
WPAA
J Bellamy
6 (6)
11 (11)
4 (4)
3 (3)
3 (3)
3 (3)
S Birch
3 (3)
3 (3)
2 (2)
-
-
-
A Burdin
6 (6)
7 (7)
4 (4)
-
3 (3)
-
J Burdin
6 (6)
9 (9)
-
3 (3)
3 (3)
2 (2)
P Galloway
6 (6)
11 (11)
4 (4)
-
-
-
S Hately
6 (6)
6 (7)
3 (4)
-
-
-
S Hindmarsh
6 (6)
10 (11)
-
3 (3)
3 (3)
-
F Lageu
3 (3)
3 (3)
-
-
-
-
C Marsh
5 (5)
5 (5)
2 (2)
-
-
-
N Spawforth
6 (6)
11 (11)
-
-
-
3 (3)
A Stone
6 (6)
5 (6)
4 (4)
3 (3)
-
-
A Thorpe
6 (6)
7 (8)
1 (2)
3 (3)
3 (3)
2 (2)
D Webb
6 (6)
5 (5)
-
-
-
-
C Marsh and F Lageu were appointed during 2022. S Birch retired from the Board at the 2022 AGM.
Finance & Investments  
Sub-Committee (FIC)
The Society has a FIC which meets on at least 11 
occasions during the year and consists of the FIC 
Chairman, the Society’s Chairman, SID and one other 
Non-Executive Board member by rotation, plus the 
Chief Executive and Chief Operating Officer. The 
sub-committee’s main responsibilities are:
	 to review monthly Income & Expenditure and 
budget performance
	 to review the Balance Sheet on a quarterly basis
	 to consider and review recommendations from 
and performance of the Society’s investment 
managers and agree sales, purchases and 
investment mandates as necessary
	 to monitor the Society’s property portfolio and 
agree sales and purchases within delegated limits
27

Audit & Risk Sub-Committee 
(ARC)
This sub-committee monitors and oversees the 
Society’s risk management function, financial 
reporting process and internal controls. It comprises 
of at least four non-executive members and meets 
on at least four occasions during the year. Executives 
attend by invitation only. The sub-committee is not 
chaired by the Society’s Chairman and the position of 
sub-committee Chairman is held by a non-executive 
having an accountancy qualification. The sub-
committee’s main responsibilities are:
	 to review the external auditor’s qualifications, 
independence and performance
	 to review the integrity of the Society’s financial 
statements
	 to monitor the performance of the Society’s 
outsourced internal audit function
	 to review the Society’s internal accounting and 
financial controls
	 to review the selection and formal tendering 
process for internal auditor and external auditor, 
as required
	 to manage the Society’s risk position
Nominations Sub-Committee 
(NC)
The NC advises the Board on the appointment of 
new members and the tenure of existing members 
as well as the perceived skills balance required on 
the Board, whilst promoting equality and diversity 
throughout the Society. It comprises of at least three 
non-executive members and meets on at least two 
occasions during the year. Executives attend by 
invitation only. The sub-committee is chaired by the 
SID. The sub-committee’s main responsibilities are:
	 Review the structure, size and composition of the 
Board; to include skills, knowledge, experience, 
length of tenure, and diversity.
	 Be responsible for identifying and nominating, 
for the approval of the Board, suitable candidates 
to fill Board vacancies as and when they arise or 
are expected to arise on retirements.
	 Make recommendations to the Board in relation 
to drafting the Society’s Board recruitment 
policy - covering matters such as recruitment, 
advertising, composition, tenure, diversity, 
equality and succession.
Remuneration Sub-Committee 
(RC)
The RC advises the Board on levels of remuneration. 
It comprises of at least three non-executive members 
and meets on at least two occasions during the 
year. Executives attend by invitation only. The sub-
committee is chaired by the Society Chairman.  
The sub-committee’s main responsibilities are:
	 Review Executive remuneration and incentive 
schemes
	 Review NED remuneration
	 Review global awards for pay increases to 
employees
Internal controls
The Society has an established framework of internal 
controls for the management of risk within the 
business and to safeguard the interests of members. 
The Executive Team is proactive in monitoring the 
efficiency of internal controls and the Board reviews 
the effectiveness of its internal control systems 
throughout the year by receiving reports from an 
external compliance consultant and our internal 
auditors, RSM. The internal auditors carry out an 
independent risk-based audit in accordance with 
industry standards and guidance, including days 
on site, and work to a Board approved programme 
designed to evaluate and improve the effectiveness 
of risk management, controls and governance 
processes. Their reports are considered by the Board 
and action taken where appropriate. 
External audit
Royce Peeling Green Limited (RPG) was appointed 
by the Board as external auditors on 30 July 2021, 
following recommendation by the ARC, and 
subsequently formally appointed by the Society’s 
members at the June 2022 AGM. They will be offering 
themselves for re-election at the 2023 AGM. RPG 
provides no non-audit services. 
The effectiveness of the external audit process is 
assessed by the Board based on a comprehensive 
audit strategy and methodology, which was 
reviewed and approved by the Board prior to the 
audit commencing. The auditors liaised with the 
Chair of the ARC during the audit planning and 
completion stages. The Board receives a report and 
presentation of the audit findings at its conclusion. 
The appointment and re-appointment of the external 
auditors is subject to a resolution at the Society’s 
AGM. 
Governance

With-profits governance
The Society’s With-Profits Advisory Arrangement 
(“WPAA”) is made up of the Society’s SID and the  
FIC supported by the With-Profits Actuary and its role 
is to act in an advisory capacity to inform the decision  
making of the Board in relation to the with-profits 
fund. In particular, the role of the WPAA is to 
consider the interests of with-profits policyholders, 
ensuring they are treated fairly and that the fund is 
managed in accordance with the Society’s Principles 
and Practices of Financial Management (“PPFM”). 
The WPAA also oversees the Society’s governance 
arrangements for closed-book business. A copy  
of the terms of reference of the WPAA and the  
PPFM can be obtained from the Society’s website  
www.sheffieldmutual.com. 
Report of the Board to  
with-profits policyholders
The Board is required to produce a report to all 
with-profits policyholders explaining how it has 
managed its with-profits business, complied with the 
PPFM and how the Board has exercised discretion 
in its decisions. This report will be available from the 
Society’s website before 30 June 2023.
Going concern
The Board is satisfied that the Society has adequate 
resources to continue in business for the foreseeable 
future. The Board considers it appropriate, therefore, 
to prepare the financial statements on a going 
concern basis.
Operating powers
It is the opinion of the Board that no activities 
have been carried on outside its powers during the 
financial period.
Solvency
The Society had the required margin of solvency as 
prescribed in regulations made by the Prudential 
Regulation Authority for its relevant classes of 
business at 31 December 2022.
Complaints by members
The Society has a documented complaints procedure 
and aims to treat its members fairly. There were six 
upheld reportable complaints in 2022.
Disclosure of information  
to the auditor
The Strategic Report and Governance Report are 
approved by order of the Board.
It is the responsibility of the Board to ensure that 
applicable accounting standards have been followed 
and that the accounts are prepared in an accurate 
and timely manner.
The Board members who held office at the date of 
the approval of the Report and Accounts confirm 
that, as far as each of them is aware, there is no 
information relevant to the audit of the Society’s 
financial statements for the year ended 31 December 
2022 of which the auditors are unaware; 
And,
They have taken all steps they should have taken as 
Board members to make themselves aware of any 
relevant audit information and to establish that the 
Society’s auditors are aware of that information. 
Jamie Bellamy 
Secretary 
28 March 2023
29

Board Evaluation Report
The Chairman carried out a formal review of each 
Board member by obtaining and co-ordinating 
responses to individual questionnaires which were 
circulated to all members. The results were then 
discussed individually, with future action points  
and training requirements noted, as appropriate.  
In addition, each member was consulted to assess 
the performance of the Board as a whole and the 
sub-committees. The SID co-ordinates the responses 
to a questionnaire relating to the performance of the 
Chairman in carrying out his duties and the results 
are discussed without the Chairman being present. 
The performance of the Executive Team is reviewed 
by the Board.
The Board has continued to develop its knowledge  
by receiving specialist presentations from the Actuary, 
Internal Auditors, Investment Managers, solicitors, 
property specialists and through attending various 
industry seminars. The Chairman has met with other 
non-executive Board members without the Chief 
Executive being present.
The Nominations sub-committee has made further 
improvements to various governance policies, 
including the succession plan. Subject also to the 
Society’s rules, new appointments to the Board are 
being made on the basis of three-year terms. Where 
Board members have held their position for more 
than nine years, they will be subject to re-election 
at the Society’s Annual General Meeting on a year 
by year basis. Justification for remaining after nine 
years will be based on the skills matrix and agreed 
by the Nominations Committee. The Society has 
a formal diversity policy for Board appointments. 
The Society sees diversity at Board level as an 
important consideration in maintaining a balanced 
and cohesive governing body. The Society will 
seek to utilise different skills, industry experience, 
background, race, gender, sexual orientation and 
other qualities of Board members. These factors will 
be considered in deciding the best composition of 
the Board and, when possible, should be balanced 
appropriately. All Board appointments will be made 
on merit based on the skills and experience required 
to best meet the role specification and make an 
effective contribution. 
There is one Board member offering herself for 
election at the AGM, one offering themselves for 
election having served a three year term and three 
offering themselves for re-election having served for 
more than nine years. With regards to those offering 
themselves for re-election having served more than 
nine years, the Chairman and SID confirm that, 
following formal performance evaluations and the 
completion of a skills matrix, the individuals continue 
to demonstrate commitment and due skill to the 
role and therefore recommend that they should be 
re-elected, “Neil’s knowledge of commercial property 
is of considerable value to Board deliberations on 
investment matters. Tony has relevant skills in new 
product development which is a priority for Sheffield 
Mutual in 2023. Jan has held senior positions within 
the mutual financial services sector and continues 
to use that experience for the benefit of the Society. 
We confirm that all three Board members remain 
effective.”
 The Board has continued to develop its 
knowledge by receiving specialist presentations 
from the Actuary, Internal Auditors, Investment 
Managers, solicitors, property specialists and 
through attending various industry seminars. 
Governance

Board Remuneration Report
Board remuneration is reviewed in accordance with 
the Society’s remuneration policy. The overriding 
principle of the policy is to ensure that remuneration 
is aligned to the long-term objectives of the Society 
and that there are no arrangements that would 
adversely affect the financial position of the Society 
or its risk profile. The Board is sensitive to pay and 
employment conditions elsewhere, although does 
not fully assess remuneration levels relative to other 
organisations, preferring instead to act with an 
element of independence. It may use remuneration 
data provided by the AFM or any other such 
organisation, as a comparable measure, to ensure 
salaries and fees remain attractive. 
During 2021 the Remuneration Committee 
appointed an independent consultant (Reward 
Risk Ltd) to review non-executive fee levels. The 
review was considered and modified to update 
Board remuneration for 2022. Non-executive Board 
members were remunerated with a flat fee of £10,000 
p.a., with additional payments of £4,500 p.a. to the 
Chairman, £5,200 to the Chairman of the ARC, £3,300 
to the Chairman of a sub-committee and £1,900 
p.a. to members of a sub-committee. For 2023, 
the Board has agreed to increase fees in line with 
inflation. Therefore, the flat fee will be £11,000 p.a., 
with additional payments of £4,950 to the Chairman, 
£5,750 to the Chairman of the ARC, £3,650 to the 
Chairman of a sub-committee and £2,100 p.a. to 
members of a sub-committee. The fees are neither 
pensionable nor performance related.
The Chief Executive Officer (CEO), Chief Operating 
Officer (COO) and Chief Commercial Officer (CCO) 
are employed on salaried contracts, which require six 
months notice’ for the CEO or three months notice’ 
for the COO and CCO. Their salary packages are 
reviewed annually by the Board without them being 
present. As with non-executives, the Remuneration 
Committee requested that the independent 
consultant also review executive salaries. The 
Executive Team are members of the Society’s Group 
Personal Pension Scheme and are eligible for a 
discretionary performance related annual bonus 
payment of up to £11,000 for the Chief Executive and 
up to £7,000 for the Chief Operating Officer and 
the Chief Commercial Officer, which may be paid 
as pension contributions. An additional element is 
included within the Executive Team bonus scheme 
relating to longer term business targets. If certain 
objectives are attained throughout the three-year 
period 2022-24, up to £2,000 per annum will be 
awarded to the CEO and £1,000 per annum to the 
COO and CCO, paid in 2025. Discretionary Christmas 
awards are also paid to the Executives (and all other 
employees). None of the Executive Team served as 
remunerated non-executive directors elsewhere 
during the year. 
The Board believes that the current remuneration 
structure, introduced following an independent 
third-party review, provides appropriate levels of 
remuneration sufficient to reflect the workloads 
and responsibilities of non-executives, whilst 
also ensuring we can recruit, retain and motivate 
executives with the required skills, experience and 
qualities to continue to run the Society successfully 
for the benefit of its members.
31

Governance
Board Members’ emoluments
Salary/fees & 
expenses
Bonus
Taxable 
benefits
Pension  
contributions
2022 
total
2021 
total
£
£
£
£
£
£
Chairman 
S Hindmarsh
21,954
-
-
-
21,954
15,013
Board 
S Birch
6,436
-
-
-
6,436
10,405
A Burdin
14,462
-
-
-
14,462
10,253
J Burdin
17,451
-
-
-
17,451
13,726
S Hately
15,353
-
-
-
15,353
13,079
F Lageu
5,121
-
-
-
5,121
-
C Marsh
9,688
-
-
-
9,688
-
N Spawforth
15,389
-
-
-
15,389
12,104
A Stone
13,872
-
-
-
13,872
10,036
A Thorpe
18,366
-
-
-
18,366
10,051
Chief Executive 
J Bellamy
117,000
15,425
376
7,020
139,821
128,501
Chief Operating Officer 
P Galloway
83,600
9,795
376
5,016
98,787
92,996
Chief Commercial Officer 
D Webb
60,500
7,350
376
3,630
71,856
59,226

Independent Auditor’s Report 
to the Members of Sheffield 
Mutual Friendly Society Limited
Opinion on the financial 
statements 
We have audited the financial statements of Sheffield 
Mutual Friendly Society Limited (‘the Society’) for 
the year ended 31 December 2022, which comprise 
of the Income and Expenditure Account, the Balance 
Sheet and the related notes. The financial reporting 
framework that has been applied in their preparation 
is applicable law and Financial Reporting Standard 
FRS 102, The Financial Reporting Standard applicable 
in the UK and Republic of Ireland, and FRS 103, 
Insurance Contracts (United Kingdom Generally 
Accepted Accounting Practice).
In our opinion the financial statements:
	 give a true and fair view of the state of the 
Society’s affairs as at 31 December 2022 and of its 
income and expenditure for the year then ended;
	 have been properly prepared in accordance with 
United Kingdom Generally Accepted Accounting 
Practice; and
	 have been properly prepared in accordance 
with the Friendly Societies Act 1992 and the 
regulations made under it.
Basis for opinion
We conducted our audit in accordance with 
International Standards on Auditing (UK) (ISAs 
(UK)) and applicable law. Our responsibilities 
under those standards are further described in 
the Auditors’ responsibilities for the audit of the 
financial statements section of our report. We are 
independent of the Society in accordance with the 
ethical requirements that are relevant to our audit 
of the financial statements in the UK, including 
the Financial Reporting Council’s (‘FRC’s’) Ethical 
Standard as applied to public interest entities, and 
we have fulfilled our other ethical responsibilities in 
accordance with these requirements. We believe that 
the audit evidence we have obtained is sufficient and 
appropriate to provide a basis for our opinion.
Conclusions relating  
to going concern
In auditing the financial statements, we have 
concluded that the Board’s use of the going concern 
basis of accounting in the preparation of the 
financial statements is appropriate. Our evaluation 
of the Board’s assessment of the Society’s ability 
to continue to adopt the going concern basis of 
accounting included:
	 Reviewing budget financial information for the 
financial year ending 31 December 2023, and up 
to date post year end management accounts 
	 Reviewing the Society’s business plan 2023 
including medium term forecast to 2025
	 Reviewing the Society’s Own Risk and Solvency 
Assessment and Forward-Looking Assessment  
of Own Risk reports
	 Reviewing Board and Subcommittee minutes
	 Discussions with our Reviewing Actuary on the 
appropriateness of assumptions and potential 
sensitivities in the Technical Provisions and 
Solvency Capital Requirement calculations
	 Discussions with management and the Board 
on such matters and post balance sheet events 
which may impact the going concern status
From the work undertaken, we noted that the 
Society’s solvency position was in excess of 162% as at 
31 December 2022 and well above the risk thresholds 
management has set to initiate a responsive action. 
The Society is also projected to remain solvent in 
the medium term forecast period to 2025 taking 
into account several potential downside scenarios. 
However, like many other societies, the Society’s 
solvency position is sensitive to movements in the 
risk-free rates and changes in the investment market 
which are largely outside their control.
Based on the work we have performed, we have 
not identified any material uncertainties relating to 
events or conditions that, individually or collectively, 
may cast significant doubt on the Society’s ability to 
continue as a going concern for a period of at least 
twelve months from when the financial statements 
are authorised for issue.
Our responsibilities and the responsibilities of the 
Board with respect to going concern are described  
in the relevant sections of this report.
Independent Auditors’ Report
33

An overview of the scope  
of our audit 
Our audit was scoped by obtaining an understanding 
of the Society and its environment, including the 
system of internal control, and assessing the risks of 
material misstatement in the financial statements. 
We also addressed the risk of management override 
of internal controls, including assessing whether 
there was evidence of bias by the Board that may 
have represented a risk of material misstatement. 
All audit work was performed directly by the audit 
engagement team with the assistance of external 
actuarial experts (‘the Reviewing Actuary’).
Our application of materiality
We apply the concept of materiality both in planning 
and performing our audit, and in evaluating the 
effect of misstatement on our audit and the financial 
statements. For the purposes of determining 
whether the financial statements are free from 
material misstatement, we define materiality as the 
magnitude of misstatement that makes it probable 
that the economic decisions of a reasonably 
knowledgeable person, relying on the financial 
statements, would be changed or influenced.
We also determine a level of performance materiality 
which we use to determine the extent of testing 
needed to reduce to an appropriately low level, the 
probability that the aggregate of uncorrected and 
undetected misstatements exceeds materiality for 
the financial statements as a whole. 
When establishing our overall audit strategy, we 
determined a level of uncorrected misstatement 
that we judged would be material for the financial 
statements as a whole. We determined materiality for 
the Society to be £724,000 which is approximately 3% 
of the prior year Fund for Future Appropriations. 
On the basis of our risk assessment, together with 
our assessment of the Society’s overall control 
environment, our judgement is that the overall 
performance materiality level should be 75% of 
materiality, namely £543,000. 
We agreed with the Board that we shall report to 
them misstatements in excess of £27,000 that we 
identify through the course of the audit, together 
with any qualitative matters that warrant reporting. 
We also determined that for items in the Income 
and Expenditure Account (I&E), a misstatement of 
less than materiality for the financial statements 
as a whole could influence the economic decisions 
of users. As a result we determined I&E materiality 
to be £340,000 based on 2% of earned premium 
income. The change was due to our assessed risk 
of material misstatement and expectation of users 
of the financial statements. We further applied a 
performance materiality of 75% of I&E materiality 
to ensure that the risk of errors exceeding I&E 
materiality was appropriately mitigated.
Independent Auditors’ Report

Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 
financial statements of the current period and include the most significant assessed risks of material misstatement 
(whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit 
strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters 
were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, 
and we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Valuation of the Long term business 
provision
As at 31 December 2022, the Society 
recognised a long term business 
provision of £137.3m (2021: £136.8m) in 
respect of its non unit linked insurance 
business. Due to the size and nature 
of the provision, we consider this to be 
material to the financial statements.
The provision is calculated using policy 
data held on the Society’s administration 
system and assumptions set using 
internal and external data as inputs to 
the actuarial valuation model.
Through the selection of appropriate 
assumptions, the Board is required 
to make significant judgements in 
conjunction with the advice of the Chief 
Actuary. These judgements involve 
considering whether the assumptions 
appropriately reflect the Society’s 
experience, circumstances and future 
expectations.
In assessing the valuation of the Long term business provision,  
we performed the following procedures:
•	 We engaged the services of a suitably qualified, independent and 
experienced actuary to review and report on the methodology and 
assumptions applied by the Board in the calculation of the Long 
term business provision, and on the accuracy of the calculation 
itself.
•	 We tested the integrity of the Society’s policy administration data 
to ensure the data being used by the Chief Actuary was accurate. 
The testing included sample checks on premium income streams, 
claims paid, data integrity checks on key fields and reconciliation  
of policy numbers.
•	 We reviewed the reasonableness of the assumptions used in the 
calculation and considered the advice of the Reviewing Actuary as 
to whether those assumptions were reasonable and the impact 
they had on the calculation.
•	 We challenged the Board’s assumptions in terms of future 
budgeted expenses and levels of projected new business,  
and compared previous budgets to actual results to assess the 
reliability of the Society’s budgeting process. We also reviewed  
post year end management information.
Our conclusion
Overall, based on the assumptions and methodology used at 31 December 2022, we consider the valuation  
of the long term business provision recognised within the financial statements to be appropriate and  
reasonable and properly disclosed.
35

Key audit matter
How our audit addressed the key audit matter
Management override of controls
Auditing Standards require us to 
communicate the fraud risk from 
management override of controls as 
significant.
Management is in a unique position to 
perpetrate fraud because of their ability 
to manipulate accounting records and 
prepare fraudulent financial statements 
by overriding controls that otherwise 
appear to be operating effectively.
In assessing the risk that accounting records and the financial 
statements are materially misstated through management  
overriding controls, we have performed the following procedures:
•	 We tested journals and other transactions and evaluated whether 
there was evidence of bias by the directors that represented a risk 
of material misstatement due to fraud.
•	 We reviewed bank transactions throughout the year and since  
the year end for material and round sum amounts and evidenced 
these back to appropriate documentation and authorisation.
•	 We reviewed the completeness and reasonableness of accounting 
estimates (in conjunction with work performed on the Technical 
Provisions noted earlier).
•	 We checked the consistency and appropriateness of accounting 
policies and disclosures in the financial statements.
Our conclusion
Overall, we are satisfied that the accounting records and financial statements are free from material  
misstatement in this respect.
Independent Auditors’ Report
Other information
The Board is responsible for the other information. 
The other information comprises the information 
included in the Report and Accounts, other than 
the financial statements and our auditors’ report 
thereon. Our opinion on the financial statements 
does not cover the other information and, except to 
the extent otherwise explicitly stated in our report, 
we do not express any form of assurance conclusion 
thereon. 
In connection with our audit of the financial 
statements, our responsibility is to read the other 
information and, in doing so, consider whether 
the other information is materially inconsistent 
with the financial statements or our knowledge 
obtained in the audit or otherwise appears to be 
materially misstated. If we identify such material 
inconsistencies or apparent material misstatements, 
we are required to determine whether there is a 
material misstatement in the financial statements or 
a material misstatement of the other information.  
If, based on the work we have performed, we 
conclude that there is a material misstatement of  
this other information, we are required to report  
that fact. We have nothing to report in this regard.
Opinion on other matters 
prescribed by the Friendly 
Societies Act 1992
In our opinion, based on the work undertaken in the 
course of the audit:
	 the information given in the Strategic Report  
and the Directors’ Report for the financial year  
for which the financial statements are prepared  
is consistent with the financial statements; and
	 the Strategic Report and the Directors’ Report 
have been prepared in accordance with the 
Friendly Societies Act 1992 and the regulations 
made under it.
In light of the knowledge and understanding of  
the Society and its environment obtained in the 
course of the audit, we have not identified any 
material misstatements in the Strategic Report  
or the Directors’ Report.

Matters on which we are 
required to report by 
exception 
We have nothing to report in respect of the following 
matters where the Friendly Societies Act 1992 requires 
us to report to you if, in our opinion:
	 proper accounting records have not been kept; 
or
	 the financial statements are not in agreement 
with the accounting records; or
	 we have not received all the information and 
explanations and access to documents that we 
require for our audit.
Responsibilities of the Board 
As explained more fully in the Board’s responsibilities 
statement, the Board is responsible for the 
preparation of the financial statements and for 
being satisfied that they give a true and fair view, 
and for such internal control as the Board determine 
is necessary to enable the preparation of financial 
statements that are free from material misstatement, 
whether due to fraud or error.
In preparing the financial statements, the Board 
is responsible for assessing the Society’s ability 
to continue as a going concern, disclosing, as 
applicable, matters related to going concern and 
using the going concern basis of accounting unless 
the Board either intends to liquidate the society or to 
cease operations, or has no realistic alternative but  
to do so.
Auditors’ responsibilities 
for the audit of the financial 
statements
Our objectives are to obtain reasonable assurance 
about whether the financial statements as a whole 
are free from material misstatement, whether due 
to fraud or error, and to issue an auditors’ report 
that includes our opinion. Reasonable assurance is 
a high level of assurance but is not a guarantee that 
an audit conducted in accordance with ISAs (UK) 
will always detect a material misstatement when it 
exists. Misstatements can arise from fraud or error 
and are considered material if, individually or in the 
aggregate, they could reasonably be expected to 
influence the economic decisions of users taken on 
the basis of these financial statements.
Extent to which the audit 
is considered capable of 
detecting irregularities 
including fraud
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design 
procedures in line with our responsibilities, outlined 
above, to detect material misstatements in respect of 
irregularities, including fraud. The extent to which our 
procedures are capable of detecting irregularities, 
including fraud is detailed below.
At the planning stage of the audit we gain an 
understanding of the laws and regulations which 
apply to the Society and how management seek to 
comply with them. This helps us to make appropriate 
risk assessments. We focused on laws and regulations 
that could give rise to a material misstatement in 
the Society’s financial statements, including but not 
limited to, the Friendly Societies Act 1992, regulations 
issued by the Prudential Regulation Authority and 
Financial Conduct Authority, the Solvency II directive 
and UK tax legislation.
Our audit focused on relevant risk areas and we 
reviewed compliance with laws and regulations 
through making relevant enquiries and corroboration 
by, for example, review of Board and Subcommittee 
meeting minutes, review of correspondence with and 
reports to the regulators, enquiries of management, 
review of reports by internal auditors and compliance 
consultants and review of the Society’s Complaints 
and dis-satisfaction register. 
We assess the risk of material misstatement in the 
financial statements including as a result of fraud 
and undertake procedures including:
	 Review of controls set in place by management
	 Enquiry of management as to whether they 
consider fraud or other irregularities may have 
occurred or where such opportunity might exist
	 Challenge of management assumptions with 
regard to accounting estimates
	 Identification and testing of journal entries, 
particularly those which may appear to be 
unusual by size or nature.
37

Independent Auditors’ Report
There are inherent limitations of an audit, hence 
there is a risk that we will not detect all irregularities, 
including those leading to a material misstatement 
in the financial statements, or non-compliance 
with regulation. This risk increases the more that 
compliance with a law or regulation is removed from 
the events and transactions reflected in the financial 
statements, as we are less likely to become aware of 
instances of non-compliance. The risk is also greater 
regarding irregularities occurring due to fraud rather 
than error, as fraud involves intentional concealment, 
forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the 
audit of financial statements is located on the FRC’s 
website at www.frc.org.uk/auditorsresponsibilities. 
This forms part of our auditors’ report.
Other matters which we are 
required to address
	 Auditor tenure - We were appointed by the 
Board on 30 July 2021 to audit the financial 
statements for the year ended December 2021 
and subsequent financial periods. The period of 
total uninterrupted engagement is two years, 
covering the years ending 31 December 2021 to 31 
December 2022.
	 Independence - We are independent of 
the Society in accordance with the ethical 
requirements that are relevant to our audit of 
the financial statements in the UK, including 
the FRC’s Ethical Standard as applied to public 
interest entities, and we have fulfilled our other 
ethical responsibilities in accordance with these 
requirements.
	 Non audit services - We have not provided any 
non audit services prohibited by the FRC’s Ethical 
Standard to the Society. 
	 Consistency of the audit report with the 
additional report to the audit and risk 
committee - Our audit opinion is consistent with 
the additional report to the audit and risk committee 
we are required to provide in accordance with ISAs 
(UK).
Use of our report
This report is made solely to the Society’s members, 
as a body, in accordance with section 73 of the 
Friendly Societies Act 1992. Our audit work has been 
undertaken so that we might state to the Society’s 
members those matters we are required to state to 
them in an auditors’ report and for no other purpose. 
To the fullest extent permitted by law, we do not 
accept or assume responsibility to anyone other than 
the Society and the Society’s members as a body, for 
our audit work, for this report, or for the opinions we 
have formed.
Martin Chatten (Senior Statutory Auditor) 
For and on behalf of Royce Peeling Green Limited 
Chartered Accountants 
Statutory Auditor
Date: 28 March 2023
The Copper Room 
Deva City Office Park 
Trinity Way 
Manchester M3 7BG

Income and Expenditure 
Account
Note
2022
2021
£
£
Technical account - long-term business 
Income 
Earned premiums 
Investment and other income 
Unrealised investment gains
4 
5 
6
17,010,020 
5,849,097 
348,409
21,655,533 
8,770,409 
7,486,351
Total income
23,207,526
37,912,293
Expenditure
Claims incurred
Net operating expenses 
 Acquisition expenses 
 Administrative expenses
Investment expenses and charges 
 Investment management expenses
Taxation attributable to long-term business
Realised loss on disposal of investment 
properties
Unrealised losses on With Profits investments
Unrealised losses on Unit Linked investments
Change in long-term business provision
Transfer from / (to) fund for future 
appropriations
7
 
8 
8
 
9
10
 
13c
13c
16
17
(11,946,008)
 
(987,175) 
(1,087,135)
 
(92,446)
661,471
(50,984) 
(15,445,284)
(343,823)
(241,443)
6,325,301
(10,242,203)
 
(918,449) 
(950,379)
 
(307,677)
(191,945)
-
 
(1,875,913)
-
(18,845,759) 
(4,579,968)
Balance on the Technical Account
          -
          -
All income and expenditure relates to continuing operations.
The above results relate wholly to continuing activities. The Society had no other recognised gains or losses other than 
those included above in the Technical Account and the movements in the Child Trust Fund Stakeholder Fund as shown 
in note 16(b).
The Society is a mutual organisation and therefore has not presented a Statement of Changes in Equity.
39

Balance Sheet
Note
2022
2021
£
£
Assets
Investments 
 Land, buildings and commercial mortgages 
 Other financial investments
13 
13 
51,247,674 
92,709,745
48,084,973 
102,029,536
143,957,419
150,114,509
Assets held to cover linked liabilities
13
50,276,988
49,873,222
Other assets 
 Fixed assets 
 Cash at bank and in hand	
 
14
 
612,140 
4,563,542
 
510,035 
4,865,595
Prepayments and accrued income 
 Accrued interest and rent	
 
 Corporation tax including deferred tax 
 VAT 
 Other prepayments and accrued income
 
 
267,924 
457,099 
- 
956,419
 
323,706 
- 
124,382 
655,339
Total assets
201,091,531
206,466,788
Liabilities
Technical provisions 
 Long-term business provision
 
16
 
(137,346,110)
 
(136,808,250)
Technical provision for linked liabilities
16
(43,248,011)
(43,349,476)
Fund for future appropriations
17
(17,849,505)
(24,174,806)
Creditors 
 Corporation tax including deferred tax 
 VAT  
 Social security
 
- 
(130,962) 
(27,700)
 
(197,055) 
- 
(27,282)
Accruals and deferred income
18
(2,489,243)
(1,909,919)
Total liabilities
(201,091,531)
(206,466,788)
The financial statements were approved by the Board on 28 March 2023
	
S Hindmarsh	
J Bellamy	
P Galloway	
D Webb 
	
Chairman	
Chief Executive	
Chief Operating Officer	
Chief Commercial Officer

Notes to the financial statements
1.	 Accounting policies
(a)	Basis of accounting
The financial statements have been prepared in 
accordance with the Friendly Societies Act 1992, the 
Friendly Societies (Accounts and Related Provisions) 
Regulations 1994, and in accordance with Financial 
Reporting Standards 102 & 103 (FRS 102 & 103) issued 
by the Financial Reporting Council.
In accordance with FRS 103, the Society has applied 
existing accounting policies for insurance contracts.
The Board of Directors has a reasonable expectation 
that the Society has adequate resources to continue 
in operational existence for the foreseeable future. 
Therefore, the Board continues to apply the going 
concern basis of accounting in preparing the Annual 
Report and Financial Statements.
(b)	Earned premiums
Earned premiums are accounted for on a cash basis. 
The difference between this and the accruals basis is 
considered to be immaterial.
(c)	Claims paid
Claims and benefits are included in the financial 
statements on an accruals basis.
(d)	Investment income
Investment income is accounted for on an accruals 
basis with property rents received in advance at the 
year-end being deferred to the subsequent period.
Rentals receivable under operating leases, including 
any lease incentives provided, are recognised in the 
Income and Expenditure account on a straight line 
basis over the term of the relevant lease.
(e)	Investments
The Society classifies all of its financial assets as 
financial assets at fair value through the Income and 
Expenditure account.
The Society classifies all of its investments upon 
initial recognition as financial assets at fair value and 
subsequent valuation movements are recognised in 
the Income and Expenditure Account.
Assets are derecognised when the rights to receive 
cash flows from the investments have expired or have 
been transferred and the Society has transferred 
substantially all risks and rewards of ownership. 
Financial assets at fair value through income include 
listed investments, and units in collective investment 
vehicles. Fair value is based on the bid value at the 
year end.	 	
All investment properties are formally revalued 
every five years and interim desk-top valuations are 
performed in the intervening years. Included within 
investment properties are eight leasehold properties 
where the lease is greater than 50 years.
Bank deposits represent variable rate deposits with 
interest paid annually.
Money market deposits represent fixed rate deposits 
with a maturity of 1 to 3 months.
Mortgages are included at cost, and interest charged 
at a commercial rate over a fixed period of time, and 
security held over the underlying asset.
The Society has not held any derivative financial 
instruments at any point during the reporting period.
(f)	Fixed assets and depreciation
All assets excluding freehold property are included 
at cost less depreciation. Depreciation is provided at 
rates calculated to write off the cost over each assets 
expected useful life as follows:
Office furniture and equipment 	
 
15% per annum straight line
Motor vehicles	  
25% per annum reducing balance
Computer equipment  
33.33% per annum straight line
Website development 
33.33% per annum straight line
Software development 
20% per annum straight line
The Society’s freehold property is included at fair 
value and it is not depreciated on the grounds of 
immateriality. It is revalued each year using the same 
approach as the Society’s investment properties 
detailed in note 1(e). Any change in fair value is 
reflected in the Income and Expenditure Account.
(g)	Impairment of assets
Assets other than those measured at fair value, 
are assessed for indicators of impairment at each 
balance sheet date. If there is objective evidence of 
impairment, an impairment loss is recognised in the 
Income and Expenditure account.
(h)	Cash and cash equivalents
Cash and cash equivalents comprise cash on hand 
and demand deposits, and other short-term highly 
liquid investments that are readily convertible to 
a known amount of cash and are subject to an 
insignificant risk of changes in value.
Notes to the Financial Statements
41

(i)	 Taxation
Taxation is provided at current rates in respect of 
the taxable element of the Society’s business. As a 
friendly society the Society is subject to tax on only 
part of its life and endowment business, on realised 
gains on the disposal of its investments and in 
respect of the increase / decrease in the value of its 
listed fixed interest securities.
(j)	Pension contributions
The Society operates a group personal pension 
scheme, available for the majority of employees. 
The scheme is invested within the Society’s Group 
Personal Plan or in a separately earmarked fund with 
Aviva. The Society’s contributions in respect of the 
year are shown in Note 11. None were outstanding at 
the year end.
(k)	Cash flow statement
The Society, being a mutual life assurance company, 
is exempt from the requirements under FRS 
102 Section 7.1A (3.17[d]) to produce a cash flow 
statement.
(l)	 Fund for future appropriations
The Fund for Future Appropriations incorporates 
amounts which have yet to be allocated to 
participating policyholders. Any surplus or deficit 
arising in the Income and Expenditure Account is 
transferred to or from the fund on an annual basis. 
Surpluses are allocated by the Board to participating 
policyholders by way of bonuses. Any unallocated 
surplus is carried forward in the Fund for Future 
Appropriations.
(m)	 Long-term business provisions
The provisions are determined by the Society’s Chief 
Actuary following her annual investigation of the 
Society’s long-term business and linked liabilities. 
They are evaluated on a Solvency II basis.
(n)	Deferred acquisition costs
In accordance with section 3.7 FRS 103, deferred 
acquisition costs are not separately accounted for 
as the Society applies the Prudential Regulatory 
Authority (PRA) realistic capital regime.
(o)	Functional currency
The functional currency of the Society continues to 
be pounds sterling because that is the currency of 
the primary economic environment in which the 
Society operates.
(p)	Foreign exchange policy	
Transactions in currencies other than pounds sterling 
are recorded at the rates of exchange prevailing 
at the dates of the transactions. At each reporting 
end date, monetary assets and liabilities that are 
denominated in foreign currencies are retranslated at 
the rates prevailing on the reporting end date. Gains 
and losses arising on translation are included in the 
profit and loss account for the period.
2.	 Critical accounting 
estimates and judgements
In the application of the Society’s accounting policies, 
the Board is required to make judgements, estimates 
and assumptions about the carrying amount of 
assets and liabilities that are not readily apparent 
from other sources. The estimates and associated 
assumptions are based on historical experience and 
other factors that are considered to be relevant. 
Actual results may differ from these estimates.
The estimates and underlying assumptions 
are reviewed on an ongoing basis. Revisions to 
accounting estimates are recognised in the period in 
which the estimate is revised, if the revision affects 
only that period, or in the period of the revision and 
future periods if the revision affects both current and 
future periods.
In the opinion of the Board, there are two key 
estimates and assumptions which carry a significant 
risk of causing a material adjustment to the carrying 
amount of assets and liabilities. These are discussed 
in more detail below.
(a)	Key sources of estimation uncertainty
The key assumptions concerning the future, and 
other key sources of estimation uncertainty at the 
balance sheet date, that have a significant risk 
of causing a material adjustment to the carrying 
amount of assets and liabilities within the next 
financial year are outlined below.
(i)	 Valuation of long-term insurance  
contract liabilities:
	 	 The liability relating to long-term insurance 
contracts, included within the technical 
provisions, is based on assumptions reflecting the 
best estimate at the time allowing for a margin 
of risk. The assumptions used for mortality, 
morbidity and longevity are based on standard 
industry tables, adjusted where appropriate 
to reflect the Society’s own experience. The 
assumptions used for investment returns, 
expenses, lapse and surrender rates are based 
on current market yields, product characteristics 
and relevant claims experience. The assumptions 
used for discount rates are based on current 
market risk rates. Due to the long term nature of 
these obligations, the estimates are subject to 
significant uncertainty.
Notes to the Financial Statements

(ii)	 Valuation of financial instruments:
	 	 The Board uses its judgement in selecting an 
appropriate valuation technique. Where possible, 
financial instruments are marked at prices quoted 
in active markets. However, where observable 
quoted prices are not available, the Society 
adopts the fair value hierarchy set out in FRS 102 
section 11. The hierarchy gives the highest priority 
to unadjusted quoted prices in active markets 
for identical assets or liabilities (Level 1) and the 
lowest priority to unobservable inputs (Level 3). 
The three levels of the fair value hierarchy are as 
follows:
	 Level 1 – Quoted prices for an identical asset 
in an active market. Quoted in an active 
market in this context means quoted prices are 
readily and regularly available and those prices 
represent actual and regularly occurring market 
transactions on an arm’s length basis. 
	 Level 2 – When quoted prices are unavailable, 
the price of a recent transaction for an identical 
asset provides evidence of fair value as long 
as there has not been a significant change in 
economic circumstances or a significant lapse 
of time since the transaction took place. If it can 
be demonstrated that the last transaction price 
is not a good estimate of fair value (e.g. because 
it reflects the amount that an entity would 
receive or pay in a forced transaction, involuntary 
liquidation or distress sale), that price is adjusted. 
	 Level 3 – If the market for the asset is not active 
and recent transactions of an identical asset on 
their own are not a good estimate of fair value, 
the fair value is estimated by using a valuation 
technique. The objective of using a valuation 
technique is to estimate what the transaction 
price would have been on the measurement date 
in an arm’s length exchange motivated by normal 
business considerations.
3.	 Capital statement
The Society’s capital management plan extends to 
the Society having appropriate procedures in place 
to identify correctly the components of its own 
fund items which is done by the Society’s Actuarial 
Function. Additionally the Society reviews, as part 
of its regular ORSA process, the current and likely 
future capital position of the business and whether 
there is a material risk that its solvency may be 
threatened. In the event that the Society’s projected 
solvency position is at risk, defined as not having 
sufficient capital resources to cover the Solvency 
Capital Requirement, then the Society will draw up 
appropriate plans to rectify that position. These plans 
will be appropriate to the Society’s circumstances at 
the time but might include:
	 Taking such management actions as may be 
anticipated within its SCR calculations. 
	 Reviewing and refocusing its strategic objectives 
and priorities.
	 Re-pricing its contracts of insurance.
	 Reviewing its expense base, including potentially 
closing to new business.
	 Seeking a transfer of engagement.
The Society is required to comply with Financial 
Reporting Standards 102 and 103. The main impact 
is to require detailed disclosure of the liabilities 
and financial strength of the Society. The capital 
statement illustrates the financial strength of the 
Society’s life business and shows an analysis of the 
available capital resources calculated on a regulatory 
basis for the Society. A valuation was carried out at 31 
December 2022 in conformity with the requirements 
of Solvency II. 
The Society was in compliance with capital 
requirements imposed by regulators throughout the 
financial year.
The capital requirement of the Society is determined 
by its exposure to risk and solvency criteria established 
by management and statutory regulations. The table 
below sets out the capital resources requirement and 
the Society’s available capital.
2022
2021
£000
£000
Solvency capital requirement
10,725
14,426
Available capital resources
17,850
24,175
Less assets inadmissible for Solvency II
(423)
(348)
Total available capital resources
17,427
23,827
Solvency cover
162%
165%
43

Set out below are the details of how the available 
capital resources have been calculated, the 
restrictions in place over the available capital 
resources, the basis for calculating the regulatory 
capital requirements and an explanation of the 
change in available capital. 
(a)	Basis of calculation of available  
capital resources
The available capital of the Long Term Insurance 
Fund has been determined in accordance with 
the Solvency II requirements and includes the 
fund for future appropriation. The fund for future 
appropriation represents surplus funds of the 
Society which have not been allocated to members 
and is available to meet regulatory and solvency 
requirements of the Society. Adjustments have been 
made to restate the assets and liabilities in line with 
Solvency II.
As shown on page 43, the Solvency Capital 
Requirement amounts to £10.73m and is determined 
in accordance with capital requirements as 
defined by Solvency II. As at 31 December 2022 the 
Society’s capital resources were 162% of its capital 
requirements.
Approximately 34% of the fund excluding the 
Child Trust Fund business is held in property and 
approximately 33% is held in equities. These are 
sensitive to market movements in general. About 
28% is held in bonds and gilts, and changing 
market conditions can affect bond values and future 
returns. Each bond also has its own individual credit 
risk. About 2% is held in the form of commercial 
mortgages. The remaining assets are invested in  
cash and deposits which are subject to default risk.
The valuation interest rate is set in reference to 
risk-free rates specified by the Prudential Regulation 
Authority (“PRA”) as at 31 December 2022.
(b)	Statutory valuation assumptions
	 Valuation interest rate 
Solvency II risk free yield curve
	 Mortality 
All applicable tables: 40% of ELT17 Males
	 Expenses 
The allowance in the premium rates plus a 
specific reserve based on expected per policy 
costs and inflated in line with RPI-0.25%
	 Lapses 
Realistic rates based on the actual experience  
for each product
	 Bonuses 
A continuation of the currently declared  
interim rates
	 Tax 
10% on interest and expenses for relevant  
taxable business
Notes to the Financial Statements
The table below sets out the capital that is managed by the Society on an FRS and regulatory basis:
2022
2021
£000
£000
Opening fund for future appropriation
24,175
19,595
Transfer to fund for future appropriation from  
Income and Expenditure account
	
(6,325)
4,580
Closing fund for future appropriation
17,850
24,175

Falls in fixed interest, equity and property values 
reduces the available capital considerably because 
the falls in asset values are not fully reflected in 
the liabilities due to the presence of policyholder 
guarantees. However, the biggest reduction in capital 
comes from a 10% fall in fixed interest yields which 
reduces capital by £2.73m. Falling yields increase the 
cost of policyholder guarantees considerably on the 
valuation basis.
A change in mortality rates does not have any 
material effect on the available capital. This is 
because the two largest classes of contract are pure 
endowments (where the premiums are returned with 
interest on death), and single premium bonds where 
the valuation method generally holds the surrender 
value as the reserve.
The PRA shock to increase the yields and 10% 
reduction in expenses increase the available capital.
(d)	Analysis of change in capital resources
2022
2021
£000
£000
Total available capital resources at 1 January 
24,175
19,595
Premiums less claims and expenses
2,983
9,544
Investment income less tax
6,367
8,222
Unrealised gains / (losses) on investments
(15,097)
5,659
Change in long-term business provision
(579)
(18,845)
Total available capital resources at 31 December
17,849
24,175
(c)	Available capital sensitivity analysis
The table below gives the change in the available capital in different scenarios:
Variable
Change in variable
Change in available 
capital £’000s
Expense allowances
10%
(886)
Expense allowances
-10%
886
Change in rate of mortality (%ELT)
10%
(85)
Change in rate of mortality (%ELT)
-10%
91
Change in fixed interest yields
PRA shock up
737
Change in fixed interest yields
PRA shock down
(2,730)
Fall in fixed interest asset value
-10%
(1,059)
Fall in equity values
-10%
(1,757)
Fall in property values
-10%
(1,107)
45

Notes to the Financial Statements
(e)	Technical provision reconciliation
2022
2021
£000
£000
Technical provision at 1 January
136,808
123,910
Methodology change
44
-
Impact of data movements in reserves
(2,047)
(5,677)
Change in discount rates
(1,002)
(572)
Change in expenses and inflation
2,611
(171)
Change in lapse assumption
332
441
Change in mortality assumption
211
-
Change in investment returns
(10,886)
2,055
Change in bonus rates
30
-
New business and risk margin
11,245
16,822
Technical provision at 31 December
137,346
136,808
4.	 Earned premiums
2022
2021
£
£
Single premium income
13,429,581
18,057,239
Regular premium income
3,580,439
3,598,294
17,010,020
21,655,533

7.	 Claims incurred
2022
2021
£
£
ISA withdrawals
5,524,790
4,144,142
Endowments and matured policies
3,999,172
3,616,279
Death benefits
1,392,423
1,799,467
Surrendered policies
873,036
540,988
Income Bond withdrawals
147,087
130,034
Additional benefits
9,500
11,293
11,946,008
10,242,203
6.	 Unrealised investment gains
2022
2021
£
£
Unrealised gain on revaluation of investment properties
348,409
221,296
Unrealised gain on listed investments:
- Unit Linked
-
6,777,572
Unrealised gain on UK Real Estate Fund
-
487,483
348,409
7,486,351
5.	 Investment and other income
2022
2021
£
£
Rental income receivable
3,105,082
2,631,776
Income from listed investments
1,650,683
1,790,897
CTF Unit Linked management charges received
697,590
663,175
Mortgage interest receivable
148,773
62,058
Gain on the sale of UK Real Estate Fund
133,115
-
Interest due from property development installations
60,099
125,523
Bank interest receivable
53,255
6,061
Gain on the disposal of computer equipment
500
-
Gain on the sale of listed investments
-
3,341,220
Income from UK Real Estate Fund
-
121,282
Gain on the sale of investment properties
-
28,417
5,849,097
8,770,409
47

Notes to the Financial Statements
8.	 Acquisition expenses
2022
2021
£
£
Salaries, including national insurance
396,753
335,848
Pension contributions
29,920
29,638
Internal auditors and compliance consultant’s fees
9,907
6,875
Actuary's fees
46,142
38,254
Auditors’ fees
17,467
16,784
Legal and professional fees
13,059
20,212
PRA / FCA Regulatory fees
14,716
14,490
Board fees and expenses
35,031
24,059
Computer running costs
23,416
21,436
Website and software development
-
265
Postage
12,420
11,507
Printing and stationery
7,755
6,001
Insurance
10,363
7,965
Motor vehicle and travel costs
1,386
242
Bank charges
8,222
6,882
Miscellaneous expenses
1,954
1,250
Charitable donations and gifts
13,622
18,501
Office expenses
25,856
22,970
Operating lease
3,201
-
Entertaining
865
1,381
Advertising and promotional costs
145,582
144,000
Personnel and training
15,917
7,890
Fees and commissions paid
133,088
162,023
Depreciation - fixtures and fittings
1,697
1,618
Depreciation - motor vehicles
580
-
Depreciation - computer equipment
2,964
4,624
Depreciation - website development
6,318
4,920
Depreciation - software development
8,974
8,814
987,175
918,449

8.	 Administrative expenses
2022
2021
£
£
Salaries, including national insurance
396,752
335,848
Pension contributions
29,919
29,638
Internal auditors and compliance consultant’s fees
29,720
20,627
Actuary's fees
138,425
114,762
Auditors’ fees
52,401
50,351
Legal and professional fees
39,176
60,635
PRA / FCA Regulatory fees
44,149
43,471
Board fees and expenses
105,094
72,176
AGM expenses
12,693
11,216
Computer running costs
47,543
44,060
Postage
25,217
23,362
Printing and stationery
15,745
12,183
Insurance
21,039
16,172
Motor vehicle and travel costs
462
81
Subscriptions
10,130
9,523
Bank charges
24,667
20,645
Miscellaneous expenses
3,966
2,539
Office expenses
25,855
22,970
Operating lease
6,498
-
Entertaining
865
1,381
Personnel and training
15,917
7,890
Depreciation - fixtures and fittings
5,093
4,854
Depreciation - motor vehicles
1,741
-
Depreciation - computer equipment
8,893
13,871
Depreciation - website development
18,955
14,759
Depreciation - software development
26,926
26,442
Recoverable VAT on expenses
(20,706)
(9,077)
1,087,135
950,379
49

Notes to the Financial Statements
9. Investment management expenses
2022
2021
£
£
Property related charges
89,500
102,314
Investment manager charges / commission*
2,946
205,363
92,446
307,677
*Russell Investments management charge is embedded within the performance of the investment funds for 2022.
10.	 Taxation
2022
2021
£
£
Current Tax:
UK corporation tax
-
38,805
UK corporation tax re prior years
(29,834)
(27,385)
Movement in deferred tax
(631,637)
180,525
Taxation attributable to long-term business
(661,471)
191,945
The balance sheet includes a deferred tax asset of £457,099 (2021: £197,055 liability). This principally comprises taxable 
losses available for relief against the profits of future periods (2021: taxable gains taxed in future periods).
11. Employee costs
2022
2021
£
£
Salaries and wages
711,857
609,793
Social security costs
81,648
61,903
Pension costs
59,839
59,276
853,344
730,972
Average number of employees:
Executive
3
3
Management
3
1
Administration
13
15
 19
 19

12. Board of Directors emoluments
2022
2021
£
£
Remuneration and attendance fees
396,791
332,250
Society pension contributions to defined  
contribution schemes
15,666
18,300
Bonuses
32,570
22,545
Expenses 
2,401
1,167
Taxable benefits
1,128
1,128
Total emoluments
448,556
375,390
Chairman
21,954
15,013
Highest paid member:
Salary
132,425
117,775
Pension contributions
7,020
10,350
Taxable benefits
376
376
C Marsh joined the Board on 18 March 2022, 
increasing the number of Board members to 12.
Board members receive expenses for travel to and 
from Board meetings and for attending external 
meetings on Society business. Subcommittee 
meetings not held on the same day as full Board 
meetings are held by video conference. 
The emoluments of the Board, excluding pension 
contributions, fell within the following bands:
2022
2021
No.
No.
£0 - £25,000
10
8
£25,001 - £100,000
2
2
£100,001 - £140,000
1
1
51

Notes to the Financial Statements
13. Investments
Note
2022
2021
£
£
Summary
Measured at fair value  
Land and buildings
 
(a)
 
48,775,424
 
45,612,723
Measured at cost  
Mortgages on land and buildings
 
 (b)
 
2,472,250
 
2,472,250
51,247,674
48,084,973
Measured at fair value 
Listed & OEIC Investments (excluding CTF)
 
(c)
 
86,666,804
 
97,786,046
Measured at cost 
Bank and money market deposits
 
6,042,941
 
4,243,490
92,709,745
102,029,536
Measured at fair value 
Unit linked assets - CTF
 
(c)
 
50,276,988
 
49,873,222
194,234,407
199,987,731

13(c). Investments at valuation
2022
2021
£
£
Sterling strategic bond fund
30,884,749
41,294,875
Multi asset growth strategy fund
27,797,331
25,460,094
UK equity fund
22,974,453
20,720,172
Global low carbon equity fund
5,010,271
5,136,947
UK real estate fund
-
5,173,958
86,666,804
97,786,046
Child Trust Fund investments
50,276,988
49,873,222
Balances as at 31 December
136,943,792
147,659,268
13(a). Land and buildings
Investment 
properties
£
Cost or valuation 
Balance as at 1 January 2022
 
45,612,723
Additions
3,489,292
Disposals
(675,000)
Revaluation in year
348,409
Balance as at 31 December 2022
48,775,424
The freehold and leasehold properties were revalued 
by Mr Chris Stott MRICS, Director at Brownill Vickers 
Limited. Mr Chris Stott MRICS is a fully qualified 
chartered surveyor and an RICS Registered Valuer.  
A formal valuation took place in December 2021  
on an open market basis. This was updated by 
a desk-top valuation in December 2022 with the 
property valuations being adjusted accordingly.
13(b).	Mortgages on land  
and buildings
Commercial
£
Balance as at 1 January 2022
2,472,250
Advances during the year
-
Repaid during the year
-
Balance as at 31 December 2022
2,472,250
53

Notes to the Financial Statements
An analysis of movements in investments during the year is provided below:
Valuation 
as at 
01.01.22
Purchases
Sales
Realised 
gains / 
(losses)
Unrealised 
gains / 
(losses)
Valuation 
as at  
31.12.22
£
£
£
£
£
£
Sterling strategic  
bond fund
41,294,875
1,500,000
(2,000,000)
-
(9,910,126)
30,884,749
Multi asset growth fund
25,460,094
5,500,000
-
-
(3,162,763)
27,797,331
UK equity fund
20,720,172
5,420,000
(1,300,000)
-
(1,865,719)
22,974,453
Global low carbon  
equity fund
5,136,947
380,000
-
-
(506,676)
5,010,271
UK RE fund
5,173,958
-
(5,307,073)
133,115
-
-
97,786,046
12,800,000
(8,607,073)
133,115
(15,445,284)
86,666,804
Unit linked
49,873,222
50,000
-
-
353,766*
50,276,988
147,659,268
12,850,000
(8,607,073)
133,115
(15,091,518)
136,943,792
*Includes CTF Unit Linked management charges received – see note 5
Fair value
The principal financial assets held at 31 December 2022, analysed by their fair value hierarchies were:
Level 1
Level 2
Level 3
Total
£000
£000
£000
£000
Directly held investment properties
-
-
48,775
48,775
Debt securities
37,404
-
-
37,614
Equity securities
43,072
-
-
43,072
Real estate (exc. direct property)
-
1,335
-
1,335
Please refer to note 2(a)(ii), for further details regarding the fair value hierarchies.

14. Fixed assets - summary
Note
Cost
Depreciation
Value 
31/12/2022
Value 
31/12/2021
£
£
£
£
Tangible
(a)
513,552
(139,402)
374,150
336,083
Intangible
(b)
401,772
(163,782)
237,990
173,952
Total
915,324
(303,184)
612,140
510,035
14(a). Tangible fixed assets
Land & 
buildings
Fixtures 
& fittings
Computer 
equipment
Motor 
vehicles
Total
£
£
£
£
£
Cost
At 01/01/2022
300,000
93,389
99,723
-
493,112
Additions
- 
36,035
718
22,282
59,035
Disposals
- 
(12,110)
(26,485)
-
(38,595)
Revaluation
- 
- 
- 
- 
- 
At 31/12/2022
300,000
117,314
73,956
22,282
513,552
Depreciation
At 01/01/2022
- 
80,554
76,475
-
157,029
Disposals
- 
(12,110)
(26,485)
-
(38,595)
Charge for year
- 
6,790
11,857
2,321
20,968
At 31/12/2022
- 
75,234
61,847
2,321
139,402
Net book value
At 31/12/2022
300,000
42,080
12,109
19,961
374,150
At 31/12/2021
300,000
12,835
23,248
-
336,083
The freehold property has been revalued in accordance with the details in Note 13(a).
55

Notes to the Financial Statements
14(b). Intangible fixed assets
Website 
Development
Software 
Development
Total
£
£
£
Cost
At 01/01/2022
97,058
179,503
276,561
Additions
125,211
-
125,211
Disposals
- 
- 
- 
Revaluation
- 
- 
- 
At 31/12/2022
222,269
179,503
401,772
Depreciation
At 01/01/2022
40,153
62,456
102,609
Disposals
- 
- 
- 
Charge for year
25,273
35,900
61,173
At 31/12/2022
65,426
98,356
163,782
Net book value
At 31/12/2022
156,843
81,147
237,990
At 31/12/2021
56,905
117,047
173,952
15. Capital commitments
At 31 December the Society had capital commitments as follows:
2022
2021
£
£
Contracted for, but not provided for in the financial statements
      - 
 16,835

16(b). Technical provision for Unit Linked Liabilities
2022 Total
2021 Total
£
£
At 1 January
  43,349,476
37,419,825
Earned premiums
627,066
608,894
Maturities / transfers to other providers
(432,114)
(626,532)
Change in provision
(296,417)
5,947,289
At 31 December
43,248,011
43,349,476
16(c). Total change in provisions
2022
2021
£
£
Total change in provisions
241,443
 18,845,759
16(a). Long-term business provision - With-profits & other
With-Profits
Other
2022 Total
2021 Total
£
£
£
£
At 1 January
137,038,950
(230,700)
136,808,250
123,909,780
Change in long-term 
business provision
552,540
(14,680)
537,860
12,898,470
At 31 December
137,591,490
(245,380)
137,346,110
136,808,250
57

Notes to the Financial Statements
18. Accruals and deferred income
2022
2021
£
£
Lapsed / matured / death policy claims outstanding
1,657,755
1,181,594
Deferred rental income
522,538
431,434
Administrative expenses
284,950
272,641
Rent deposits held on account
24,000
24,250
2,489,243
1,909,919
19. Actuarial valuation and 
technical provision
An Actuarial Report on the assets and liabilities of 
the Society was last prepared as at 31 December 2022 
and a copy of this Report may be inspected at the 
Registered Office of the Society.   
20. Related party transactions
The Society’s Board members (including executives) 
are able to be members of the Society and pay 
monthly or annual premiums, all such transactions 
are conducted at arm’s length.
17. Fund for future appropriations
2022
2021
£
£
At 1 January
24,174,806
19,594,838
Surplus / (deficit) for the year 
(6,325,301)
4,579,968
At 31 December
17,849,505
24,174,806

ACTUARY STATEMENT IN ACCORDANCE WITH SECTION 77 
OF THE FRIENDLY SOCIETIES ACT 1992
The following information has been provided in accordance with Section 77 of the Friendly Societies Act 1992:
The Chief Actuary and With-profits Actuary is Ms. Cara Spinks FIA, Consultant Actuary at OAC PLC (“OAC”).
The Society has requested Ms. Spinks to furnish it with the particulars required under Section 77 of the Friendly 
Societies Act 1992. Ms. Spinks is not a member of the Society and has no other financial or pecuniary interests 
in the Society, with the exception of fees paid to OAC PLC for professional services, which amounted to £184,567 
in 2022 (2021: £153,015).
59

Registered office	
3 Maple Park 
	
Maple Court 
	
Wentworth Business Park 
	
Tankersley 
	
Barnsley S75 3DP 
	
Tel: 01226 741 000 
	
Fax: 01226 741 222 
	
Email: enquiries@sheffieldmutual.com 
	
Web: www.sheffieldmutual.com
Board of Directors	
Jamie Bellamy (Chief Executive) 
	
Anthony Burdin 
	
Janet Burdin 
	
Paul Galloway (Chief Operating Officer) 
	
Stuart Hately (Chairman of ARC) 
	
Stephen Hindmarsh (Chairman) 
	
Faye Lageu 
	
Courtney Marsh 
	
Neil Spawforth (Chairman of FIC) 
	
Adrian Stone 
	
Andrew Thorpe (Senior Independent Director) 
	
Dawn Webb (Chief Commercial Officer)
Chief Executive/Secretary	
Jamie Bellamy
External auditors	
Royce Peeling Green Limited 
	
The Copper Room, Deva City Office Park 
	
Trinity Way 
	
Manchester, M3 7BG
Internal auditors	
RSM Risk Assurance Services LLP 
	
Fifth Floor, Central Square 
	
29 Wellington Street 
	
Leeds, LS1 4DL
Solicitors	
Hill Dickinson LLP 
	
50 Fountain Street 
	
Manchester, M2 2AS
Actuarial function holder and	
C Spinks BSc FIA 
with-profits actuary	
OAC PLC 
	
141-142 Fenchurch Street 
	
London, EC3M 6BL
Investment managers	
Russell Investments Ltd
Bankers	
NatWest Bank plc
Registered under the Friendly Societies Act 1992 (Reg No 810F)
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct 
Authority and the Prudential Regulation Authority (Financial Services Register no. 139855)
Correspondence to the Board should be addressed to the Society’s registered office
Society Information
Society Information

Glossary
Abbreviations
AFM
Association of Financial Mutuals
AGM
Annual General Meeting
ARC
Audit and Risk Committee
CTF
Child Trust Fund
EIOPA
European Insurance and Occupational Pensions Authority
ESG
Environmental, Social and Governance
FCA
Financial Conduct Authority
FIC
Finance and Investments Committee
FRC
Financial Reporting Council 
FRS
Financial Reporting Standards
GDPR
General Data Protection Regulation
IDD
Insurance Distribution Directive
ISA
Individual Savings Account
ISAs (UK)
International Standards on Auditing (UK)
NC
Nominations Committee
OCIO
Outsourced Chief Investment Officer
ORSA
Own Risk and Solvency Assessment
PPFM
Principles and Practices of Financial Management
PRA
Prudential Regulation Authority
RC
Remuneration Committee
RPI
Retail Prices Index
SCR
Solvency Capital Requirement
SID
Senior Independent Director
SM&CR
Senior Managers & Certification Regime
WPAA
With-Profits Advisory Arrangement
Glossary
61

Notes
Notes

63

May 2023
Issued by Sheffield Mutual Friendly Society. Sheffield 
Mutual is the trading name of Sheffield Mutual Friendly 
Society Limited, 3 Maple Park, Maple Court, Wentworth 
Business Park, Tankersley, Barnsley S75 3DP. The Society is 
incorporated and registered under the Friendly Societies 
Act 1992 (register no 810F) and is authorised by the 
Prudential Regulation Authority and regulated by the 
Financial Conduct Authority and the Prudential Regulation 
Authority (Financial Services Register Number 139855).
Monday - Friday 9am - 5pm
www.sheffieldmutual.com
Call our team on 01226 741 000
Calls may be monitored and recorded for your protection
enquiries@sheffieldmutual.com