Results of provider Royal London published today show the group’s pre tax profits for the first six months zooming to £138 million. The company had recorded a loss of £2 million over the same period last year.
New life and pensions businesses witnessed a 16 per cent rise in profits to £59 million from £51 million during the period. The new business margin was recorded at 3.3 per cent during the period.
Sales in new life and pensions business went up 11 per cent over the same period last year to £1,788 million. Royal London 360’s new business jumped 37 per cent to £209 million while Scottish Life’s new business grew by 10 per cent to £1,243, during the period.
Assets under administration for Royal London’s Ascentric platform zoomed 34 per cent to £741 million during the first six months of the year.
However, Bright Grey/Scottish Provident witnessed a slowdown as new business dropped 17 per cent to £141 million for the period. Royal London Asset Management’s (RLAM) net new business was also down by 17 per cent to £583 million in the first six months.
Group chief executive Mike Yardley said the company is “clearly financially robust” while announcing the results today, his last before he steps down on September 2011.
“We have increased the operating profit, which we believe is the best measure of performance, as well as improving the contribution from new life and pensions business. I am sure that members and other policyholders will appreciate the financial benefits and additional security that these results provide,” said Mr. Yardley.
“Markets may well continue to be volatile, but our strong capital position will help ensure that Royal London continues to deliver good performance,” he added.
Commending the group’s performance despite challenging market conditions, he said: “I hope to be able to announce, in the near future, a positive conclusion to the exclusive discussions we are at present having with Co-operative Financial Services regarding the acquisition of their life fund and asset management business.
“The group is in good shape and has the potential to move on to even greater achievements in the coming years,” he added.