Royal London boss Loney to step down as firm also annouces chairman succession

Phil Loney

The company said Mr Loney is standing down to concentrate on his longstanding charitable interests in the international development sector and supporting people with learning difficulties.

Since joining Royal London in 2011, Phil has overseen 154 per cent growth in the UK’s largest life, pensions and investment mutual from £46 billion assets under management to £117 billion at the end of June 2018. Total life and pension new business sales for Royal London have quadrupled from under £3bn in 2011 to over £12bn in 2017, creating a business that is a top four new business player in its key sectors.  

In a statement, the firm said Mr Loney had led its transformation from a collection of individual brands “into a strong, single brand with a reputation for excellent customer service”.

2017 financial results reflected the expanded revenues with EEV pre-tax profit at £594 million (compared to £321 million in 2016). Over one million Royal London members and qualifying customers share in the profits as a result of its unique ProfitShare scheme which has paid out over £750 million. 

Rupert Pennant-Rea, chairman of Royal London, said: “On behalf of the board I would like to thank Phil for his dedication to and success in transforming the scale, reach and visibility of Royal London. He leaves the business both in a significantly stronger position than when he joined and extremely well-positioned for continued future success.”

Phil Loney, chief executive of Royal London, said: “It has been an incredible privilege to lead Royal London over the last seven years and to work with so many dedicated and professional colleagues. I would like to thank Rupert and all of my board colleagues for their support in allowing us to take bold decisions in the pursuit of making Royal London a truly successful financial mutual.  Growing this business has been a real team effort with all credit to my executive team and their people. I am particularly proud that, as a member-owned business, our customers are centre-stage and we are able to reward them by sharing our profits. I have no doubt that Royal London will continue to go from strength to strength and I wish all of our people continued success in years to come.”

Royal London also announced the departure of Rupert Pennant-Rea at the end of 2018, having served as Chairman of the board for over five years. The announcement also came with the news that he will be succeeded, subject to regulatory approval, on 1st January 2019 by Kevin Parry OBE. 

Royal London said its incoming  has extensive board and chair experience and a deep understanding of the asset management and life and pensions sectors gained from his executive and non-executive careers. He has experience and contemporary knowledge of the regulatory environment as overseen by the Prudential Regulation Authority and the Financial Conduct Authority.

He currently serves as Chairman of Intermediate Capital Group plc, Senior Independent Director of Standard Life Aberdeen plc and is a non-executive director of Nationwide Building Society and Daily Mail & General Trust plc. He will stand down from the Board of Standard Life Aberdeen plc on 31 December 2018.

He will also lead the search for Mr Loney’s replacement as CEO.

The search for the chairman was led by Andrew Palmer, Royal London’s senior independent director, who said: “On behalf of the board I would like to thank Rupert for his Chairmanship over the last five years. Rupert has guided us through a significant period of change which has helped to consolidate Royal London’s status as a hugely successful and profitable mutual. We conducted a wide ranging and extensive search for a new Chairman and I am delighted that we have secured Kevin as our next Chairman.”

Kevin Parry OBE, incoming Chairman of Royal London, said: “I am honoured to have been selected as Chairman of Royal London.  I am firmly committed to the principle of mutuality and am looking forward to working with the rest of the board, executive team and a new chief executive to take Royal London on the next phase of its growth.”