The firm cites the unsuccessful integration of its managed salesforce into Park Row as well as regulatory reviews and the “ever increasing” cost of compliance.
It says it will spend this year recruiting advisers and is confident its flexible working conditions and new IT system will attract quality candidates.
Royal Liver’s new business for 2007 were down slightly on the previous year, which it says was due to the closure of the managed salesforce in Ireland in 2006 and stopping sales of pension term assurance in the UK from December 2006.
Its protection arms, Progress and Caledonian Life, performed strongly. Royal Liver says the prominence of the Progress brand increased during the year and it has seen record levels of new business in the first quarter of 2008.
Caledonian Life’s with-profits bond sales were particularly buoyant and initiatives such as the launch of a seriousillness product for mortgage protection and introduction of an online broker resource centre contributed to strong sales.
Chief executive Steve Burnett says: “Delivering the society back to an expense surplus position is a true achievement in the face of a constant battle to manage our inevitably declining legacy book and challenging market conditions. Our new business areas continue to grow, with particular success in the protection market.
“Turbulent economic conditions will no doubt create challenges but we have confidence that Royal Liver is well positioned to make further progress.”