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 £212bn in assets under management, surpassing the previous year's £199bn. This growth was attributed to resilient market performance and a significant influx of pension wealth, particularly as savers prepare for pensions to be included in inheritance tax calculations from April 2027.
Chief executive Barry O’Dwyer stated that the increased activity in the pension market shows no sign of slowing down and is expected to persist for at least the next couple of years. He noted that people are increasingly focusing on retirement plans and consolidating old pensions.
The company reported a 13% increase in operating profit to £187m, supported by strong performance in its protection and workplace pension offerings. New business sales in pensions rose 5% to £4.7bn, primarily driven by the workplace pension channel. Protection sales also increased by 6% to £438m, with individuals seeking life insurance to cover potential inheritance tax bills.
O’Dwyer urged Chancellor John Healey to provide clarity in the upcoming Autumn Budget to prevent pension savers from making rash decisions based on speculation, referencing past instances where rumours led to premature cash withdrawals.