Royal London sees 39% annual growth

Royal London, the UK’s largest mutual life, pensions and investment company, has announced that its total continuing new life and pensions business sales for the year ending 2014 was up 39% at £4,826m.

Related topics:  Finance News
Rozi Jones
12th February 2015
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Total Group funds under management were £82.3bn as at 31 December 2014, an increase of 12% on 31 December 2013.

Group pensions rose 83% to £2,199m as the process of automatic enrolment reaches smaller employers. Individual pensions increased by 25% to £1,388m, and drawdown rose 43% to £781m.

In the fourth quarter, individual pension sales rose 65% compared to Q4 2013 (£443.2m Q4 2014 and £269.5m in Q4 2013). Royal London based the result on the very high reputation for product and service excellence of the individual pensions range.

Consumer protection rose 167% to £8m, but intermediary protection dropped 23% annually to £338m.

When the pension freedoms come into force, existing advised customers will be able to take all or part of their pension as a lump sum from their current plan, as well as having the option to transfer to drawdown.

Flexi-access drawdown will be available both to existing and new customers, giving them complete flexibility over the level of income they select. Existing customers with a capped drawdown plan taken out before 6 April 2015 will have the option to continue their plan on a capped basis or convert it to flexi-access drawdown at any time.

Royal London’s Pensions Portfolio customers will be able to access drawdown within the same pension plan without transferring to a new plan.

Phil Loney, Group Chief Executive of Royal London, said:

“This is a particularly pleasing set of results. We have continued to move ahead in the individual and group pensions markets and have begun to see the results of some of the long term investment that we have made in our intermediary protection business. New business is coming onstream for our consumer protection lines too. I think that this demonstrates one of the benefits of our mutuality; we are able to invest time and effort in making sure our propositions are right for their market over the long term without the pressure of shareholders with short time horizons looking for a quick return on their investment."

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