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Royal London profits down 38%

Royal London’s pre-tax profit fell 38 per cent to £86m in the first half of the year, while new assets under administration on the Ascentric platform fell 21 per cent to £587m.

The group’s interim results for the six months to 30 June, published last week, show pre-tax profits fell from £138m in the first half of last year. Total new business was down 1 per cent from £1.79bn to £1.78bn.

While Ascentric’s new assets under administration fell over the period, total assets rose 16 per cent to £4.3bn, up from £3.7bn at the end of 2011.

Royal London Asset Management saw funds under management rise 2 per cent to £44.9bn, up from £44bn at the end of 2011. But net new business saw outflows of £310m compared with inflows of £583m in the first half of last year.

Scottish Life saw new business fall 3 per cent from £1.24bn in H1 last year to £1.2bn this year.

Royal London 360 saw new business fall 8 per cent to £192m, down from £209m in the first half of last year.

Bright Grey and Scottish Provident intermediary new business rose 46 per cent from £152m in H1 last year to £221m this year.

Royal London group chief executive Phil Loney says: “There has been a significant uplift of advisory firms joining Ascentric, our wrap platform, where assets under administration are now well over £4bn.”

Brunning Newman Houghton director David Brunning says: “There are too many platforms and they are struggling to be profitable so I expect there will be some consolidation, which will be hugely influenced by the RDR.”

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