Royal London has reported a significant increase in profits for the past year and is set to reward its customers with a share of the gains.
The mutual insurer's pre-tax profit rose by 11% to £277m, up from £249m in 2023, following the expansion of new businesses and the consolidation of its consumer portfolio, as reported by .
In its annual results, Royal London announced a profit share of £181m, which will be distributed among 2.3 million eligible customers in April 2025.
Barry O'Dwyer, group chief executive, commented: "Royal London is customer-owned and is run for the benefit of customers, not shareholders.
"We share our profits with eligible customers and our ProfitShare scheme will distribute £181m to 2.3m customers in April."
The company's flagship investment product, The Governed Range, sustained £3.2bn in net inflows, mirroring the figure from 2023. Assets under management surged by more than £10bn, reaching £72bn.
A tech overhaul has been credited with boosting new schemes, as digital enhancements aimed at improving customers' financial resilience were introduced, including a contribution guidance tool and advancements in pension consolidation services.
These technological improvements have contributed to a 39% rise in Workplace Pension transfers.
Additionally, Royal London welcomed 966 new Workplace Pension Schemes in 2024, an increase from 930 in 2023, with sales of Workplace Pensions climbing by 19%.
The firm attributes this growth to a rise in medium and large-sized employer scheme acquisitions.
Transfers to the group's fund for future aspirations experienced a downturn, with figures dropping to £167m, significantly less than the previous year's £382m.
Notably, the company explained that this amount reflects "the impact of positive economic movements and is stated after the allocation of ProfitShare."
In addition, the company's presence in Ireland saw a substantial 29 per cent increase in new business sales for Protection and Pension Products, accumulating up to £297m.
O'Dwyer remarked: "Our customer-first approach also appeals to employers wanting to pick the best possible offering and, in 2024, nearly 1,000 employers chose to establish a Royal London Workplace Pension scheme, very often moving from a shareholder-owned competitor."
He also noted that 2024 marked Royal London's entrance into the bulk purchase annuity market, offering trustees the choice of selecting the only customer-owned provider in this segment.
