View more on these topics

RLAM suffers 80 per cent drop in Q1 new business

Royal London reported a mixed first quarter as growth in new life and pensions sales was tempered by an 80 per cent slump in new asset management business, interim results show.

Results for the first three months of 2011 show Royal London Asset Management net new business fell from £578.7m in Q1 last year to £113.4m this year.

In contrast, total new life and pensions business increased 9 per cent from £775m in Q1, 2010 to £841m this year.

Scottish Life new business was up 5 per cent, from £586m in the first quarter last year to £615m in 2011. The group’s platform Ascentric increased its assets under administration by 72 per cent from £225m in Q1 last year to £388m this year.

The company’s bancassurance arm enjoyed a 52 per cent rise in new business, from £23m in Q1 last year to £35m this year, while its international business Royal London 360 increased new business 50 per cent from £78m to £117m over the same period.

However Bright Grey and Scottish Provident, Royal London’s protection businesses, suffered a 14 per cent drop in new business to £73m. This compared to £85m in the first quarter last year.

Chief executive Mike Yardley says the drop in new asset management business “has to be seen in the context of an outstanding first quarter of 2010”.

He says: “New business performance was led by Scottish Life, Royal London 360 and Ascentric.

“The protection market continues to be difficult, while RLAM’s performance has to be seen in the context of an outstanding first quarter in 2010.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm