Barry O'Dwyer, Group Chief Executive Officer, commented:
"As a customer-owned business, when we do well, our customers share in that success. In April, we distributed £199m to 2.4 million eligible customers, including new ISA customers, taking the total we've shared since 2007 to over £2bn – a clear demonstration of the value that mutuality can deliver.
"Our Workplace Pensions business continued to grow in the first half of 2026, as more customers chose to bring their pensions together with Royal London. We also launched our Targeted Support ISA service, making it easier for people to access the recommendations they need when making savings decisions.
"Our ongoing focus on delivering long-term value for customers helped to deliver a 13% increase in operating profita, allowing us to continue investing in enhancing services for their benefit. Built on our strong relationships with advisers and employers, our strategy positions us well to deliver for customers now and into the future."
Highlights
- Workplace Pensions new business sales increased 13%, with assets under management (AUM) reaching £43.6bn (31 December 2025: £38.0bn) as we welcomed 112,000 new scheme members, all of whom will be eligible for ProfitShare.
- The Governed Range, where most of our pension customers are invested, saw net inflows of £1.5bn (H1 2025: £1.6bn), with AUM reaching £92bn (31 December 2025: £83bn).
- UK Protection new business sales increased 6% to £483m (H1 2025: £455m), following enhancements to our income protection offering and continued momentum in high net-worth business.
- First provider to deliver a Targeted Support service, for our Stocks and Shares ISA, helping more people make informed investment decisions through simple, accessible and relevant recommendations.
- As the only mutual provider in the market, we made disciplined progress in our Bulk Purchase Annuity business, with nine transactions completed and £457m of premiums.
- Customer satisfaction3 rose again, with nearly half (48%) of customers rating Royal London 9 or 10 out of 10, up four points since last year.
- Active users of the Royal London app increased by nearly 30% year-on-year to 573,000 (H1 2025: 447,000) as we continued to enhance our digital services.
- Growing pipeline in RLAM as clients engage across a number of strategies, securing a £1.1bn Global Equities mandate from a European institution.
- In Ireland, new business sales increased 35% to £306m (H1 2025: £227m) driven by strong support for our pensions offering.
Financials
|
Six months ended |
Six months ended |
||
| UK GAAP |
Group adjusted operating profit4 | £187m | £166m |
| Transfer to the fund for future appropriations5 | £294m | £115m | |
| New business | Life and pensions new business sales6 | £6,155m | £5,885m |
| Inflows | Gross inflows7 | £22,399m | £22,371m |
| Net inflows7 | £1,774m | £4,068m | |
| 30 June 2026 | 31 December 2025 | ||
| Funds | Assets under management8 | £212bn | £199bn |
|
Capital9 |
Regulatory View solvency surplus | £2.7bn | £2.5bn |
| Regulatory View capital cover ratio | 184% | 183% | |
| Investor View solvency surplus | £2.7bn | £2.5bn | |
| Investor View capital cover ratio | 188% | 188% | |
- Group adjusted operating profit4 increased by 13% to £187m (H1 2025: £166m), supported by higher contributions from our Protection and Workplace Pensions propositions and the Asset Management business.
- Transfer to the fund for future appropriations (FFA)5 of £294m (H1 2025: £115m) includes the impact of positive economic movements.
- Life and pensions new business sales6 increased to £6,155m (H1 2025: £5,885m) supported by growth in Workplace Pensions.
- Gross inflows7 were £22.4bn (H1 2025: £22.4bn) with net inflows7 of £1.8bn (H1 2025: £4.1bn) driven by flows into RLAM’s cash strategies and the Workplace Pensions business. H1 2025 was boosted by a £4.6bn multi asset mandate with St. James's Place.
- Assets under management8 increased to a record £212bn (31 December 2025: £199bn) driven by £1.8bn of net inflows and positive market movements of £11.5bn.
- Capital position remains robust, with Investor View and Regulatory View9 ratios of 188% (31 December 2025: 188%) and 184% (31 December 2025: 183%) respectively.
For further information please contact:
Lora Coventry, Senior PR Strategy Manager
- Email: lora.coventry@royallondon.com
- Mob: 07919 170673
Notes to editors
a. 'Operating profit' represents the APM measure 'Group adjusted operating profit'.
- The information in this announcement relates to The Royal London Mutual Insurance Society Limited ('RLMIS' or 'the Company'), and its subsidiary undertakings, together referred to as 'Royal London' or 'the Group'.
- The Group assesses its financial performance based on a number of measures, some of which are not defined or specified in accordance with relevant financial reporting frameworks such as UK GAAP or Solvency II. These measures are known as Alternative Performance Measures (APMs). APMs are disclosed to provide further information on the performance of the Group and should be viewed as complementary to, rather than a substitute for, the measures determined according to UK GAAP and Solvency II requirements. Accordingly, these APMs may not be comparable with similarly titled measures and disclosures by other companies.
- The Royal London Customer Value Statement (CVS) model tracks seven key pillars of importance across nearly 3,000 Royal London customers twice a year: Communicate, Membership, Resolution, Be Personal, Pay Out, Investment and Reputation. The results are reported by each factor and through an overarching CVS-weighted index that represents the percentage of customers rating the company 9 or 10 out of 10 overall.
- Group adjusted operating profit is an APM and is the transfer to the fund for future appropriations before other comprehensive income excluding: short-term investment return variances and economic assumption changes (economic movements); gains/losses arising from acquisitions and other corporate transactions; ProfitShare; ValueShare; tax; and one-off items of an unusual nature that are not related to the underlying trading of the Group. Profits or losses arising within the closed funds are held within the respective closed fund surplus; therefore Group adjusted operating profit represents the result of the Royal London Main Fund (RL Main Fund) and the RLI DAC Open Fund. In HY25 and earlier periods, this metric was referred to as Group operating profit before tax and has been renamed to make clear that it is an APM; the basis of calculation is unchanged. All references to 'operating profit' and 'Group operating profit' in this document represent the APM measure 'Group adjusted operating profit'. References to 'UK', 'Asset Management' and 'Ireland' operating profit represent the relevant Result from operating segments included in the Segmental Information note to the Interim Financial Statements.
- Transfer to the fund for future appropriations represents the statutory UK GAAP measure 'Transfer to the fund for future appropriations' in the technical account within the Consolidated statement of comprehensive income.
- Life and pensions new business sales is an APM and represents life and pensions business only, excluding Asset Management and other lines of business. New business sales are presented as the Present Value of New Business Premiums (PVNBP), which is the total of new single premium sales received in the period plus the discounted value, at the point of sale, of the regular premiums the Group expects to receive over the term of the new contracts sold in the period. The rate used to discount the cash flows is derived from the opening swap curve at the start of the financial period for all new business except annuities, where the rate used is the future yield (less an allowance for downgrade and default risk) on assets expected to back these annuitant liabilities over the lifetime of the contract.
- Gross and net flows incorporate flows into Royal London Asset Management (RLAM) from external clients (Asset Management flows) and those generated from the Group's life and pensions business. Asset Management net flows represent external client inflows less external client outflows, including cash mandates. Life and pensions net flows represent the combined premiums and deposits received (net of reinsurance) less claims and redemptions paid (net of reinsurance). Given its nature, non-linked Protection business is not included.
- Assets under management (AUM) is an APM and represents the total of assets managed by, or on behalf of, the Group, including funds managed on behalf of third parties. This includes assets where the beneficial ownership interest resides with third parties (and which are therefore not recognised in the UK GAAP balance sheet) but on which the Group earns fee revenue. Where referenced, investment performance has been calculated for funds with a defined external benchmark on an equally weighted basis, by measuring the number of in-scope funds outperforming their three-year benchmark divided by the total number of in-scope funds and, on an AUM-weighted basis, by using a weighted average of active assets under management. Benchmarks differ by fund and reflect their mix of assets to ensure direct comparison. Performance calculations include cross-holdings and exclude passive funds.
- The capital cover ratio is calculated as the Group's Own Funds, being the regulatory capital under Solvency II, divided by the Solvency Capital Requirement (SCR). The 'Investor View' is an APM and equals the RL Main Fund capital position (i.e. excluding ring-fenced funds). The 'Regulatory View' solvency surplus and capital cover ratio exclude the closed funds' surplus as a restriction to Own Funds. All capital figures are stated on a Group Partial Internal Model basis. All references to Solvency II in this document refer to the Prudential Regulatory Authority's solvency framework for UK insurers.
- Figures presented throughout are rounded. The capital cover ratios and new business margins are calculated based on exact figures.
About Royal London
Royal London is the UK's largest customer-owned life, pensions, and investment company, and one of the top 30 mutuals globally*. With over 160 years of heritage and no external shareholders, we're able to take a long-term view, focusing on supporting better outcomes for our customers.
Today, Royal London looks after 8.4 million life and pension policies, with £212 billion of assets under management and over 5,000 colleagues**. In 2026, we shared £199 million of our profits with approximately 2.4 million eligible customers.
We invest in partnerships that reflect our values, including being the only Founding Partner of the first British & Irish Lions Women's Team, supporting women's and girls' rugby across grassroots and elite levels to help develop the next generation of players and coaches. All driven by our commitment to doing what's right for our customers.
Royal London works for you.
Discover more at royallondon.com.
*Based on total 2024 premium income. International Cooperative and Mutual Insurance Federation Global data, 2026.
**Figures quoted are as at 30 June 2026.
