"We’re pleased to have helped so many members and their families during difficult times last year and are proud that we increased our payout ratio even further."
- Jonathan Sandell - Shepherds Friendly
Shepherds Friendly has revealed that it paid out £3.25 million in income protection (IP) claims in 2025, rising slightly from the £3.23 million paid out in 2024.
The Manchester-based mutual society accepted 97% of IP claims in 2025, increasing one percentage point from 96% in 2024 and maintaining its five-year average of 95%.
The mutual supported 475 families over the course of the year and rejected 17 claims in 2025, down from 19 in 2024. All of the claims denied were due to the applicants not meeting the policy terms and conditions.
Musculoskeletal conditions topped the most common reason for claims, totalling 49%, which is a decrease from 55% in 2024.
This was followed by chest/lung/nose/throat conditions, which accounted for 8% of claims, and mental illness at 6%.
Gastrointestinal conditions made up 5% of claims, cancer 3% and heart, neurological and surgery-related conditions each contributed 2% of claims.
Musculoskeletal conditions also accounted for the bulk of the payments made by value, at 52.1%. Mental illness was responsible for the next highest portion at 12.5%, a figure that is more than double its percentage of claim numbers and was up one percentage point from 2024.
Chest/lung/nose/throat conditions represented 6.2% of the total payout, gastrointestinal issues 4.5% and cancer 3.7%.
READ MORE: Scottish Widows paid £219m in life and critical illness claims last year
"We’re pleased to have helped so many members and their families during difficult times last year and are proud that we increased our payout ratio even further," Jonathan Sandell, CEO of Shepherds Friendly (pictured above), said.
"This demonstrates our commitment to providing our members with financial support when they need it the most, something we’ve been doing consistently well for 200 years and counting and will continue to do for many years to come."
