Royal London welcomes “robust” results

Funds at the UK’s largest mutual life insurance and pensions company rose by 14 per cent to a record £130 billion in the first six months of the year.

The increase came on the back of external net inflows worth £3.9 billion, up from £2.2 billion in H1 2018, attributed to new institutional mandates and demand for its credit and sustainable products.

Internal net inflows from the wider group were £1.5 billion, declining from £2 billion in the same period last year due to reduced pension sales and higher workplace pension outflows.

Operating profit was stable at at £187 million, again put down to a 4 per cent reduction in life and individual pension’s sales.

Royal London chairman Kevin Parry said: “First half trading was robust. RLAM won new mandates on the back of strong investment performance across asset classes.

“New business in pensions was marginally lower reflecting the industry-wide reduction in defined benefit transfers, offset by higher workplace sales.

“We continue to maintain a robust capital foundation to allow us to invest in our future core products and propositions whilst also innovating to deliver better outcomes for customers in underserved markets.”

Royal London rocketed up the fund sales league table in the second quarter of this year, becoming the biggest gainer quarter-on-quarter with £913 million in fund units sold – near double the previous quarter’s £525 million.

In June, the firm appointed Standard Life veteran Barry O’Dwyer as its chief executive. He will replace Phil Loney in the role next month.