Royal London’s pre-tax IFRS operating profit plummeted from £232m in 2010 to £64m in 2011 as total revenues slumped by over £2bn.
The mutual insurer’s year end results, published today, show total revenues dropped from £4.39bn in 2010 to £2.34bn last year. This was mainly due to a £2bn fall in investment returns, from £3.32bn to £1.31bn.
Royal London says its main focus is EEV pre-tax operating profit. This figure increased 37 per cent, from £243m in 2010 to £334m in 2011, boosted by the acquisition of Royal Liver.
If the impact of the Royal Liver deal is excluded from the 2011 figure, EEV operating profit figure to £237m.
Royal London group chief executive Phil Loney says: “This is a strong set of results, given the challenging economic backdrop in 2011.
“As a result of our robust operating performance, we are able to increase the mutual dividend allocated to relevant policyholders to £88m, following an allocation of £85m in 2010.
“Royal London’s continued good performance enables us to provide tangible benefits for these policyholders.”
EEV pre-tax operating profit at Scottish Life fell from £98m in 2010 to £68m in 2011. Profits at Bright Grey and Scottish Provident, the provider’s protection businesses, increased from £50m to £84m.