Royal London has reported a sharp rise in net inflows to £4.1bn for the first half of 2025, up from just £77m a year earlier.
The increase was driven by £1.6bn of net inflows into its Governed Range and a £4.6bn multi-asset mandate from St James’s Place.
Half-year results published today (8 August) show operating profit before tax rose 15% year-on-year to £166m, supported by higher protection new business and BPA sales.
The mutual also reached a £1bn milestone in BPA premiums since launching the proposition last year, securing £658m in H1 and a further £142m so far in H2.
Assets under management increased to £181bn, up from £173bn at the end of 2024, supported by net inflows and £3.2bn of positive market movements.
Group chief executive Barry O’Dwyer said adviser support had underpinned strong flows into the Governed Range, which attracted £1.6bn of net inflows in the first half and now manages £75bn, offering diversification through allocations to real estate and commodities.
“For six years running, Royal London has been the most preferred personal pension provider by financial advisers, testament to the strength and quality of our propositions,” O’Dwyer said.
“Our new Bulk Purchase Annuity offering, the only mutual option in the market, is also resonating well with trustees and advisers.”
He highlighted the mutual difference, noting that in April Royal London shared £181m with 2.3 million customers through its ProfitShare scheme.
Protection new business rose 14% to £455m, while sales in Ireland jumped 76% to £227m, reflecting the group’s leading broker position and pension expansion.
The mutual paid 98.5% of protection claims, totalling £415m to 33,000 customers and their families.
Royal London expanded its private assets capability with the launch of two asset-backed securities funds and the proposed acquisition of Dalmore Capital, subject to regulatory approval.
This will provide Governed Range customers with access to long-term infrastructure investments and support the BPA proposition.
The group also adopted the Sustainability Focus label across all eight in-scope funds in its £11bn Sustainable Fund Range, under the FCA’s Sustainability Disclosure Requirements.
The mutual’s capital position remains strong, with the Investor View cover ratio rising to 204% and the Regulatory View ratio to 197%, despite a 2% capital strain from BPA business.
