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Royal London Group

Royal London Financial Results for year ended 31 December 2009
31 March 2010

Royal London, the UK's leading mutual life and pensions company, has announced its audited financial results for the 12 months ended 31 December 2009.

Key Financial Measures

  • Surplus realistic capital up 58% to £1,863m (2008 £1,182m)
  • Insurance Group Directive (IGD) capital surplus up 33% to £1,026m (2008 £773m)
  • Total present value of new life and pensions business premiums1 up 10% to £2,461m (2008 £2,237m)
  • Margin on new life and pensions business1 2.9% (2008 2.3%)
  • Profit from new life, pensions and asset management business1 up 25% to £80m (2008 £64m)
  • European Embedded Value (EEV) operating profit £171m (2008 £213m)
  • EEV profit after tax of £404m (2008, a loss of £762m)
  • IFRS profit after tax of £410m (2008 a loss of £432m)
  • Group Embedded Value £1,840m (2008 £1,436m)

Operating Highlights

  • Growth in pensions new business, when majority of other companies have reported substantial falls
  • The former Resolution businesses integrated into the Group
  • Ascentric wrap platform total assets under administration up 94%
  • Significant new business contribution from Scottish Provident

Commenting on the results, Mike Yardley, Group Chief Executive of Royal London, said:

"In difficult conditions we have achieved a good overall performance. We have grown our sales, increased our profits from new business and further strengthened our capital position.

"The performance of our businesses is very good in the prevailing conditions, with the former Resolution businesses producing a substantial contribution to our profits. The Group is financially strong with the IGD surplus increasing by a third during the year and Group embedded value up by 28% to over £1.8bn.

"As a result of our performance in 2009, I am pleased be able to announce that we are allocating a mutual dividend of £25m, which allows with-profits members to share directly in the success of their business.

"The economic environment remains difficult with little likelihood of a marked improvement in the short term. However, I am confident that the Group is positioned to continue to perform well."

Appendix: 31 March 2010

1- Includes the full year effect of businesses acquired in 2008

For further information please contact:

Royal London
Alasdair Buchanan, Group Head of Communications
Tel: 0131 456 7133
Mobile: 07919 170 413

Polhill Communications
John Coles
Mobile: 07836 273 660

Editor's Notes:

Royal London Group is a specialist financial service provider. Its businesses focus on those sectors of the market which value quality propositions, operating through a number of brands:

  • Scottish Life – UK pensions market
  • Bright Grey – UK protection market
  • Scottish Provident – UK protection market
  • Royal London 360° – offshore investment markets
  • RLAM – fund management
  • RLAS – life and pensions administration
  • Fundsdirect / Ascentric – funds supermarket; wrap platform

Royal London also distributes life and pensions products through Santander's UK branch network.

Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £37.5 billion. Group businesses serve around 3.4 million customers and employ approximately 2,800 people. Figures quoted are as at 31 December 2009.



The Royal London Mutual Insurance Society Limited. Registered Office: 55 Gracechurch Street, London EC3V 0RL United Kingdom. Registered in England No 99064.

Royal London Group consists of The Royal London Mutual Insurance Society Limited and its subsidiaries. The Royal London Mutual Insurance Society Limited provides life assurance and pensions and is a member of the Association of British Insurers and the Association of Financial Mutuals. Royal London Savings Limited provides the Individual Savings Account. Royal London Unit Trust Managers Limited provides unit trusts. All these companies are authorised and regulated by the Financial Services Authority.

Group Registered VAT Number 368 5244 27