Royal London sales boost despite protection drop
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Royal London has delivered a 26 per cent increase in life and pensions business from £1.8bn to £2.3bn this year despite a significant slump in new protection business.
The life and pensions company’s third quarter results revealed a 44 per cent boost in new business for Scottish Life, increasing from £1.1bn to £1.6bn between January and September. This was driven by a 63 per cent rise in individual pension new business following the Government’s decision to increase the minimum pension age from 50 to 55 spurred a first quarter spike.
However, new business at Bright Grey and Scottish Provident, the firm’s protection arms, slumped 19 per cent from £310m last year to £251m in the first nine months of 2010.
Group chief executive Mike Yardley (pictured) says: “I am very pleased that the group continues to increase new business despite difficult market conditions.
“There is no doubt that markets will remain difficult for the foreseeable future. However, I am confident that our focus on providing quality products and services puts us in a strong position to continue to perform well.”
In the group pensions market, Royal London says evidence of market distortion from the use of provider-driven commission ahead of implementation of the retail distribution review remains.
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