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.”