In a poll of the 120,000 Scottish Legal Life policyholders, 13,234 voted in favour of the transfer, while 432 voted against it.
Scottish Legal Life’s board says it reviewed a wide range of organisations before selecting Scottish Friendly to act as its exclusive partner.
Scottish Legal Life chief executive Gerry Kay says: “We have chosen Scottish Friendly as our preferred partner as we believe it will deliver the best long term value for our policyholders. We were particularly impressed with its efficient back office and low administration charges.
“These factors, together with a demonstrable financial strength and successful business strategy, will help to deliver the highly competitive, long term investment returns which Scottish Legal Life members have come to expect.”
Scottish Friendly chief executive Fiona McBain says: “Scottish Friendly is very proud to have been selected from a tough competitive field to pursue this opportunity. Both Gerry and I are confident that we can deliver an agreement which will meet with the approval of Scottish Legal Life policyholders and which will have long-term and profitable benefits for members of both organisations. We hope to be in a position to complete a transfer of business during 2007.”