It’s been another great year for Royal London
As a business, we’re committed to delivering the best possible value and outcomes for our customers and members – it’s at the heart of what we do – and we’re delighted to see from our 2018 financial results that this strategy’s working.
Watch our video to hear from former CEO Phil Loney about how we performed in 2018, what this meant for our members and why we’re making a difference as a business. You can also find more information on our 2018 financial performance and highlights below.
CAPTION: We had another great year in 2018, which is good news for our members. We’ve seen growing business returns and have continued to focus on being a responsible company, doing the right thing for our members, customers and people.
PHIL LONEY: My name’s Phil Loney and I am the Group CEO of Royal London. In 2018 Royal London’s performance was really strong. Group operating profit was up by 20% at £396 million. We still had £114 billion of money that we were investing on behalf of our members. We have more than 6 million customers and we now have 1.4 million members, so a really strong rounded year.
CAPTION: We’re supporting our members.
PHIL: So our members have benefited through an increased ProfitShare. That was up 6% at £150 million. And we also have a broader range of member benefits now than we’ve ever had before. We’ve seen a great take-up of our charity foundation. Our members can use the foundation to get grants made by Royal London to charities in their locality. And also we’ve seen great take-up of our work placement schemes across Royal London. So if you or a member of your family wants to get work experience in the markets that we work in, we can help you with that.
CAPTION: We’re making a difference.
PHIL: So social impact is really key to Royal London. We exist primarily to create value for our customers. But we also want to have a broader impact on society, and we do that in each area of our business. Now take pensions, pensions is a public sector, private sector partnership. We know there are still lots of problems with the State Pension. So we’ve been campaigning on those kind of issues, which benefits our members, but it also benefits broader society.
Then of course we’re a major investor. So we have very strong conversations with the companies that we invest in about how well run they are. And increasingly we’re also acting as a socially responsible investor. We’re wanting to talk to companies more and more about the social impact that they have and also the environmental impact that they have.
Finally there’s a whole area of funeral poverty. We were founded over 150 years ago to try and end funeral poverty in the UK, and I’m sorry to say that in the last 10, 15 years, funeral poverty has been getting a lot worse. So we’ve been working very hard to campaign for the social fund, which helps the poorest people in our society to avoid a pauper’s funeral.
CAPTION: We’re creating a great place to work.
PHIL: So beyond making sure that we’ve got a really fair and strong remuneration package for our people, we want to support them in other ways. We’ve had a big focus on wellbeing, so making sure that people have got a balanced life, a good diet, good mental health.
We’ve also been working very hard to improve the number of internal appointments. What that means of course is we’re now getting more women into senior roles. We’re still working hard to make sure that we are a disability confident employer, we want to get more disabled people working for Royal London and we also want to make sure that our workforce represents all the different ethnic groups that make up the very diverse UK society.
CAPTION: We’re focusing on the future.
PHIL: So Royal London’s growth over the last eight years has been spectacular. We’ve doubled in size. And that’s all been achieved by just focusing on our customers, understanding how we can give them better and better value for money, and that’s going to be our focus going forwards.
CAPTION: For more information about membership, mutuality and how we’re working for you, take a look around the members area of our website.
“In 2018, the end of the auto-enrolment roll-out, turbulent market conditions as a result of ongoing Brexit uncertainty and the continuing low interest rate environment presented challenges to our sector,” said Phil. “However, I’m pleased to report that we saw strong life and pensions new business sales with strong individual pension sales, and increases in protection sales from our intermediary businesses both in the UK and Ireland, and also our direct to consumer business.”
Royal London reached a record EEV operating profit before tax of £396m in 2018, an increase of 20% compared to 2017. And, as usual, our success has been shared with our 1.4 million members, who’ll get a ProfitShare of £150m for 2018.
Our financial highlights
- £396m: EEV operating profit before tax. (2017: £329m)
- £150m: ProfitShare after tax. (2017: £142m)
- £114bn: Funds under management. (2017: £114bn)
See our Annual Report & Accounts 2018
Find out more about our financial performance, the way we work, and our commitment to having a positive social impact in our Annual Report & Accounts 2018.