In its 2023 financial results announcement this week, UK ICMIF member Royal London reported that it would be boosting its customers’ retirement savings once again by adding a share of its profits to their plans thanks to the company’s ProfitShare scheme.
Each year, Royal London aims to boost its customers’ retirement savings through ProfitShare, a discretionary enhancement for eligible Royal London customers. The allocation is considered annually and depends on a number of factors. In April 2024, ProfitShare of GBP 163m (2022: GBP 155m) will be shared with over two million eligible customers who have life and pensions policies with Royal London. Since ProfitShare was established in 2007, over GBP 1.7m has been shared with eligible customers.
Barry O’Dwyer, Group Chief Executive, said: “Royal London is a customer-owned mutual, so we don’t have shareholders. This means that the 19% growth in our operating profit before tax is good news for our customers. The profits we make are reinvested in the business to improve our offerings and service for customers, returned to eligible customers via ProfitShare, and used to support our charitable and social impact activities.”
Kevin Parry OBE, Chairman, commented: “2023 was another year of significant uncertainty, however our mutuality enables us to continue to focus on the long term and to put our members and customers firmly at the heart of our decision-making.
“We have again shared our success with eligible customers through ProfitShare. I am delighted that our ongoing performance and continued strength has enabled us to share GBP 163m with over two million eligible customers.”
Royal London also announced that in 2023, it had welcomed 930 new workplace pension schemes, allowing it to support a further 240,000 new pension savers. The breadth and depth of the mutual’s investment range attracted over GBP 4bn in net inflows, as it grew its membership base, and delivered strong active investment performance while expanding its fund range and international reach.
Proudly customer-owned since 1861, for Royal London, being a mutual is at the heart of its purpose: “Protecting today, investing in tomorrow. Together we are mutually responsible.” Its purpose is of great importance to Royal London and the company says its strategy is to be an insight-led, modern mutual which grows sustainably by deepening customer relationships.
The company offers protection, long-term savings and asset management solutions in the UK and Ireland – and, for Royal London, its mutuality is as relevant today as when the business was first established. Royal London says it remains committed to helping customers build their financial resilience and, through its investments, it aims to help build a world worth retiring into.
Other highlights in 2023
During 2023, Royal London enhanced its workplace digital transfer offering making it easier for customers to consolidate their pension pots with and it also introduced a new state benefits calculator to its financial wellbeing health check enabling customers to identify their eligibility for benefits, entitlements and grants.
Royal London says it also maintained a continued focus on improving protection products to ensure it can keep delivering better outcomes for customers. In 2023, the mutual paid 99.0% (2022: 99.4%) of protection claims, paying over GBP 725m to approximately 76,000 customers, making a real difference to families across the UK and Ireland who have had to face the worst kinds of life shocks.
An agreement was reached with Aegon UK to acquire its closed individual protection book of over 400,000 policies, and in January 2024 the acquisition of Responsible Group, which provides later life lending products, was completed.
Royal London was named Company of the Year 2023 at the Financial Adviser Service Awards – where it retained its five-star service rating for the 15th year running for pensions, and the 10th year running for protection.
The mutual became Founding Partner of first ever British & Irish Lions Women’s Programme and committed to investing in elite player and coach development, as well as women’s and girls’ grassroots rugby, across the UK and Ireland.
In May of last year, Royal London also announced a new GBP 1.2m partnership with Cancer Research UK focused on tackling cancer inequalities.
Photo source: Royal London
