Royal London’s total new life and pension business fell by 1 per cent in the first nine months of this year.
Sales fell by to £1.49bn from £1.5bn in the same period last year. Pension arm Scottish Life’s business rose slightly by 1 per cent from £1.09bn to £1.106bn, with individual pension business up by 13 per cent to £548m. Group pension sales fell by 14 per cent to £384m.
Protection arm Bright Grey saw new business rise by 2 per cent to £130m. Scottish Life International’s new business fell by 8 per cent from £135m to £125m.
Royal London-branded business was down by 10 per cent from £150m to £134m. Royal London Asset Management’s gross new business excluding external cash mandates leapt by 214 per cent to £2.3bn.
Group chief executive Mike Yardley says: “As I highlighted when we reported our halfyear new business results, a feature of the group pension market for some time has been the high initial commission being paid by some product providers. This has resulted in reported but, in reality, largely non-existent market growth. We have made it clear that we will not operate on those terms and we remain focused on writing new business that we believe has good potential for being profitable.”