Royal London profit rises after new business sales
Royal London reported strong profit growth in the first half of the year after an increase in new business sales.
The insurance company recorded a 15 per cent rise in pre-tax profit to £166m, compared to £144m in 2024, crediting its higher business sales and bulk purchase annuity buy ins.
completed eight BPA buy-ins, securing £658m in premiums, with a further £142m secured so far in the second half of the year.
It completed the acquisition of infrastructure asset manager Dalmore Capital to support its ongoing BPA proposition, while also launching two asset-backed securities funds.
Royal London boss Barry O’Dwyer said, “We entered the [BPA] market in the fourth quarter of last year and we’ve had a very successful start”
“And one of the things that make us stand out is the fact that we’re mutual, which appeals a lot to the trustees…and that has sriven a lot of demand”.
Its flagship fund offering, The Governed Range, saw an increase in net flows to £1.6bn from £1.5bn in 2024.
Gross inflows rose to £22.4bn, while assets under management jumped by £3bn in the first half of the year, reaching £75bn.
The company also shared £181mn with its 2.3m customers in April, after announcing it would do so in its full year results.
O’Dwyer added trustees had had a “positive reaction” to this morning’s results due to metrics being “strongly up”.
Royal London’s tech improvements continue
The group continued its digital improvements to build customers’ financial resilience, with over 160,000 UK customers accessing online guidance tools.
Engagement with its mobile app continued, with 50,000 more customers using it since the end of 2024, rising to 447,000 users.
New pension sales for businesses increased slightly to £4.5bn, while individual pension sales rose three per cent to £2.4bn.
Transfer to the fund for appropriations, however, recorded a sharp decline to £115m from the £312m reported the year before, with returns lower than expected.
O’Dwyer said, “For six years running, Royal London has been the most preferred personal pension provider by financial advisers, testament to the strength and quality of our customer propositions.”
Ireland continues strong performance
The company’s Irish arm continued its track record of strong performance, with its new business sales growing 76 per cent to £227m.
The group said this reflected its leading position in the Irish broker protection market and its successful expansion of pension offerings, with O’Dwyer adding the market has seen “massive growth” in recent years.