Acquisitions have been key to an assets surge by an ambitious Kent financial services business - and it wants to buy more.

The 97-year old Tunbridge Wells-based Reliance Mutual Insurance Society has reported asset growth of 30 per cent to £1.7bn in 2007, up from £1.3bn in 2006.

Assets have trebled since the mutual embarked on an acquisition programme in 2003 when they stood at £491 million.

Reliance Mutual buys life assurance and pensions, often business closed by other organisations. It has made six acquisitions since 2003 and has ambitious plans to snap up more.

It claims that even complicated acquisitions of small to medium sized insurance companies and friendly societies, or larger insurers looking to offload a closed book of business, can be completed within 10 months.

Chief executive Mark Goodale said: "Our strategy is focused on the acquisition of blocks of policies closed to new business and the sale of niche products through IFAs and other business partners.

"2007 has been a particularly successful year, with acquisitions dominating our activities. New business premiums increased marginally during 2007. Unlike many life assurers, new business is not the prime financial indicator of the Group’s performance but nevertheless, this was a good result, given our focus on acquisitions during the year."

In 2007, Reliance Mutual bought University Life, a subsidiary of Equitable Life Assurance Society and Hearts of Oak Insurance Company, formerly Hearts of Oak Friendly Society.

Mr Goodale added that scale ensured the business remained competitive and members received good value for money.

"The latest tables of with-profit endowment payouts show that we continue to deliver excellent value to our with-profit policyholders.

"We also need to ensure we are financially strong, and 2007 has been another year of strong performance in solvency terms, with the Fund for Future Appropriations growing six per cent to £122m.

"Looking ahead, our priorities are to complete the post-transfer work from the Hearts of Oak acquisition, complete the acquisition recently announced of an additional block of business from Family Assurance scheduled for July 31, and to expand sales of our highly competitive smoker annuity and develop distribution partnership agreements with third parties."

Reliance Mutual says it is also focused on tailoring so-called "white label" products for advisers and organisations looking to brand and market their own protection products such as term assurance, whole life and critical illness without having to carry regulatory and administrative back office burdens.