Royal London protection sales dip on consumer inaction

clock • 1 min read

New business at Royal London's protection arms Bright Grey and Scottish Provident fell 14% over Q1 2011 compared to the same quarter last year.

Sales in the three months to 31 March 2011 were £73m, down from £85m last year.

It said the current pressure on budgets is making people take stock of their finances.

Overall new life and pensions business at the group was up 9% at £841m, and Scottish Life new business was up 5% at £615m.

Royal London Asset Management (RLAM), meanwhile, saw a marked decline in new business compared with the same period last year.

Net sales were £113m in Q1 2011, compared to 2010's £579m.

However, RLAM said Q1 2010 was a bumper quarter for the asset management division, when new business grew 213% compared to Q1 2009 due to a sudden influx of institutional pension fund clients.

At Ascentric, the group's adviser services arm, new assets under management grew 72% on Q1 2010 to £388m.

Royal London 360, the group's offshore business, increased new business by 50% to £117m, from £78m in 2010.

Mike Yardley, group chief executive, said: "New business performance was led by Scottish Life, Royal London 360° and Ascentric, with each delivering strong results.

"Scottish Life did particularly well to exceed the equivalent 2010 figure which had been boosted by a surge of new business relating to the change to minimum pension age.

"The protection market continues to be difficult, while RLAM's performance has to be seen in the context of an outstanding first quarter in 2010.

Yesterday, Royal London 360 launched Oracle, a new single premium offshore bond.

Royal London Group has been negotiating a takeover of troubled insurer Royal Liver since 2010 and in April agreed the asset transfer terms for the acquisition.

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