AGM
- AGM Introduction
2009- 2008
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- 2005
AGM History
The documents (pdf) below provide an outline of events at previous meetings, or you can view the pages using the left hand menu.
Annual General Meetings
The 2009 AGM
The Royal London Annual General Meeting 2009 was held at Glaziers Hall in London on 20 May.
As with previous years, members not attending the meeting in person could make their views known by registering a proxy vote. In addition, members were also able to vote online.
Over 22,000 Royal London members chose to vote.
A number of members attended the meeting in person and took the opportunity to question the Board both formally, in the Question & Answer section of the meeting, and informally over a buffet lunch. This year we also offered members who could not attend the meeting the opportunity to submit questions by e-mail. Relevant questions and answers can be found at the end of this page.
The proxy voting process and entry to the meeting on the day were managed by the independent scrutineers, Electoral Reform Services (ERS). To ensure that the votes of members present and the proxies were accurately reflected, ERS provided electronic voting consoles for voting at the meeting.
Results of voting at Royal London's Annual General meeting on
20 May 2009
|
Resolution |
For |
Against |
Withheld |
% For |
|
1. Receive the Annual Report and Accounts 2008 |
21,026 |
453 |
443 |
97.9 |
|
2. Approve the directors remuneration report |
19,192 |
1,775 |
956 |
91.5 |
|
3. Reappoint PricewaterhouseCoopers LLP as auditors |
20,912 |
622 |
389 |
97.1 |
|
4. Approve the determination of the auditors remuneration by the directors |
19,899 |
1,228 |
790 |
94.2 |
|
5. Reappoint Tim Melville-Ross as a director |
20,300 |
989 |
635 |
95.4 |
|
6. Reappoint Stephen Shone as a director |
20,174 |
1,092 |
658 |
94.9 |
|
7. Reappoint Trevor Bish-Jones as a director |
19,961 |
1,288 |
673 |
93.9 |
|
8. Reappoint David Williams as a director |
20,251 |
1,014 |
652 |
95.2 |
| 9. Authorise the Company and its subsidiaries to make political donations | 14,235 | 6,595 | 1,069 | 68.3 |
Main points from the 2009 Royal London AGM
-
Tim Melville-Ross, Chairman
After opening the meeting, Tim reassured members that Royal London is in good shape to ride out the financial storms that global economies have been experiencing.
Resolution
The acquisition by Royal London of certain businesses and other assets of what was previously Resolution plc has been successfully completed. Tim highlighted that Royal London had been in a unique position to take advantage of this opportunity. There is a good strategic fit between the businesses we acquired and our existing ones, particularly in the protection market. Tim also confirmed the successful integration of the international businesses, now known as Royal London 360°.
In summary, the Resolution transaction has made a fundamental change to the future profitability and strategic offering of the Royal London Group.
Mutuality
Royal London is the UK's largest mutual life and pensions company and that the Board believes mutuality remains a viable and relevant business model. Tim highlighted that there has been a resurgence of interest in the "customer owned" model, in the midst of all the turmoil in the financial markets. This may be due to the ability of mutuals to look to the longer term.
-
Mike Yardley, Group Chief Executive
Mike reported that Royal London had no significant exposure either to the various banking collapses, or to the complex property-related investments, which adversely affected a number of UK and overseas banks. However, as a major investor, we cannot be immune to the effects such events have on investment markets.
Mike provided information on the Group's new business results, noting that the value of new long-term business premiums in 2008 amounted to £2.2 billion, an increase of 17% over the 2007 result. This contributed a profit of £52 million to Royal London's overall operating profit of £213 million, which was significantly higher than the previous year, and is a strong positive contribution to the company's financial results.
Business Highlights:
- Bright Grey
New business up 4.9% on 2007
Financial Adviser Five-Star award for service - Scottish Life
New business up 7.6% on 2007
Individual pension growth of 25.1% - Royal London 360°
New business from Scottish Life up 1%
Acquisition of Scottish Provident International brought presence in Hong Kong - RLAM
£1.7 billion in net new assets
New business generated £15 million of profit - Fundsdirect
New assets under administration £200 million
Considerable potential for further growth - RLAS
Focus on further enhancing customer experience
Improved business efficiency
Mike advised that new businesses results for the first quarter of 2009 are substantially higher than 2008, reflecting in part the effect of the Resolution acquisition.
The current social and economic climate offers a real opportunity for mutuals, such as Royal London, to demonstrate the benefits of dealing with a company that has members, and not shareholders.
Our vision is to become the UK's leading customer-owned financial services organisation.
-
Stephen Shone, Group Finance Director
Stephen emphasised that, as a mutual, our primary responsibility is to deliver value to our members and policyholders whilst providing them with financial security and stability.
He explained how Royal London has weathered the storm by maintaining a strong financial position, and that Royal London continues to deliver value to its members and other policyholders.
The turmoil in the markets resulted in negative investment returns in 2008 across all asset classes except for government bonds.
Despite the impact of falling investment markets, Royal London has maintained substantial capital, both on a realistic and a regulatory basis (these are the two methods which the FSA uses to look at an insurance company's capital position). The company had £1.7 billion of capital at the year end against a capital requirement of £0.9 billion, which means our regulatory capital cover ratio is 184%. Royal London remains in a strong financial position.
The negative investment returns during 2008 meant that the value of asset shares underlying Royal London's with-profits policies have fallen significantly. As a result, final bonuses and maturity payouts on with-profits policies have reduced. However, payouts for Royal London policies continue to compare well to other major with-profits insurers in the UK. Also, on a broader view, returns on with-profits policies are attractive in relation to alternative investments.
In summary, Stephen said that 2008 had been a difficult year for all financial sector companies. 2009 is expected to be another difficult year, with much uncertainty as to how long and deep the downturn will be. He emphasised that Royal London has demonstrated resilience through the challenges of the past year and we will continue to navigate the current difficult financial waters in order to ensure we are well-positioned for a future recovery.
-
David Williams, Chairman of Remuneration Committee
David gave a brief summary of the Royal London Remuneration Committee Report, which is set out in full on pages 36 to 37 inclusive of the Annual Report. A summary of the Committee's report is also included on pages 4 and 5 of the Summary Financial Statement.
He confirmed that the Remuneration Committee is confident that executive remuneration arrangements are in line with the market and are also geared to achieving the performance targets and strategic development objectives of the company.
The provisional date for the 2010 AGM is Thursday 20 May.