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Strong new business sales

Loney unveils record final year at helm of Royal London

Phil LoneyRoyal London’s outgoing chief executive Phil Loney announced record operating profit before tax of £396m a 20% rise on the previous year (£329m).

The company, which owns the Scottish Life and Scottish Provident brands, said the increase was driven by strong new business sales with a reduced cost base, offset by negative investment returns which were positive in 2017. However, the profit before tax figure was down 41% from £594m to £351m as a result of negative investment returns which were positive in 2017;

Royal London Asset Management reported record-breaking external net flows of £4.1bn for 2018, allowing the group to maintain £114bn of funds under management despite volatile markets.

The group continued to win new mandates in fixed income while its sustainable range saw a 23% increase in assets.

Mr Loney, pictured, who announced last year that he would be retiring from the group to focus on other activities, said: “In 2018, turbulent market conditions as a result of ongoing Brexit uncertainty and the continuing low interest rate environment presented challenges to our sector.

“However our asset management business delivered record net external inflows with funds under management remaining constant at £114bn, due both to the sale of our Channel Islands business and the backdrop of volatile market conditions. Assets under administration at Ascentric remained steady at £14.5bn, showing a small uplift from £14.4bn in 2017.”

See also:

O’Dwyer tipped to replace Loney as Royal London CEO



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