Key facts
- Royal London's assets under management reached a record £212bn.
- The increase was driven by positive market movements and pension wealth.
- Operating profit rose 13% to £187m.
- Pension new business sales increased 5% to £4.7bn.
- Protection sales saw a 6% increase to £438m.
Royal London has announced a record high in assets under management, reaching £212bn, an increase from £199bn at the end of the last financial year. This growth was attributed to resilient market activity and a significant influx of pension wealth, with chief executive Barry O’Dwyer noting the market's resilience despite external global events.
While gross inflows remained steady at £22.4bn, net inflows saw a decline from £4.1bn to £1.8bn. This decrease was partly due to the previous year benefiting from a substantial £4.6bn multi-asset mandate with St James’s Place.
The mutual insurer reported a 13% increase in operating profit to £187m, supported by strong performance in its protection and workplace pension propositions, as well as its asset management division.
New business sales in the pension system increased by 5% to £4.7bn, primarily driven by the workplace pension channel, which saw a 13% rise in sales to £2.4bn. This growth was fueled by higher transfer volumes and new market entrants, leading to an 112,000 increase in customer numbers, bringing the total to 2.3 million. Workplace AUM grew by 15% to £43.6bn.
Protection sales also rose by 6% to £438m, with increased activity from high-net-worth individuals seeking life insurance before potential changes to inheritance tax rules in April 2027. O’Dwyer explained that individuals are purchasing life insurance to cover potential inheritance tax bills.
During the first half of the year, Royal London paid out 98% of protection claims, totaling £392m to customers.