Insurer Reliance Mutual is poised to take on thousands of extra pension policies.

Reliance Mutual Insurance Society, based in Tunbridge Wells, is acquiring a second block of business from Family Investments worth £14.7m.

The transfer of 23,500 pension policies from Brighton-based Family, representing £260m funds under management, was originally agreed in 2004.

Most were transferred but some were blocked by a law that prevented a tax-exempt friendly society from keeping its tax exemption status if it transferred policies to an insurance company.

But the law was changed in the Finance Act 2007, clearing the way for the full transfer to go ahead.

Reliance Mutual has become a market specialist in closed funds which financial institutions are keen to offload. The Family deal, which is subject to policyholder approval, would be the society’s seventh acquisition in five years.

Other policies involved in the transfer include the old Time Assurance and Templeton Life Assurance policies and annuities in payment resulting from Department of Social Security rebates when individuals contracted out of the SERPs scheme.

Reliance Mutual said the proposed transfer would not affect the benefit expectations of its with-profits policyholders and have no material effect on their security. "We also conclude that there are no significant additional risks taken on as a result of the transaction," it said.

Mark Goodale, chief executive of Reliance Mutual, said: "Over the last five years we have established a sound reputation in the acquisition of small and medium size blocks of business. Any organisation which finds itself with a particular block of business that no longer fits its current core activities, or they wish to raise additional capital, should talk to us.

"With the recent legal tax changes in tax-exempt business this may be particularly relevant for any friendly society facing pressures on its financial resources."

John Reeve, chief executive of Family Investments, added: "I am pleased that we have successfully argued for the law to be clarified in respect of transfers of tax exempt business. In doing so we have been able to protect the interests of the transferring policyholders and subject to their agreement at our AGM in May we will be finally able to complete the deal we originally agreed with Reliance Mutual in 2004."

Reliance Mutual is nearly a century old. It started life in March 1911 as the Farringdon Reliance Friendly Collecting Society in London.

In 1939, the business was evacuated from London to Southborough, near Tunbridge Wells, later moving to Reliance House in Tunbridge Wells. In 2001, the Society relocated to new offices in the Great Hall, Tunbridge Wells.