Royal London chief executive Mike Yardley is writing to IFAs to say he has no reason to believe any of the problems identified in Standard Life will affect Royal London or its subsidiary Scottish Life.
ScotLife is publishing a guide to financial strength for plcs and mutuals, which is available through its sales consultants. It examines the new format of realistic financial reporting and covers free-asset ratios, waivers, imp- licit items and financial engineering for mutuals and plcs.
Royal London says it welcomes the new realistic financial reporting approach which is creating a level playing field for measuring financial strength.
Yardley says: “There has been much commentary in recent weeks on the financial strength of the UK life and pension industry, particularly centred on the health of mutual insurance companies.
“Royal London has had routine discussions with the FSA over the past few months in connection with the development of our own realistic balance sheet. On the basis of the work already carried out, there is no reason to believe that any of the problems identified in respect of Standard Life will have an impact on Royal London.”
Informed Choice managing director Nick Bamford says: “It is the job of chief executives to send out these messages of reassurance but I am not reassured by this in any way.”