Royal London new business climbs 17%

New business at Scottish Life, the group's UK pensions arm, climbed 4% to £211.3m on an APE basis, while Bright Grey, its UK protection proposition, reports a 7% increase to £32.7m.

Royal London Asset Management (RLAS), which describes 2009 as a ‘year of two halves' in investment markets, reported a 2% jump to £17.9m and says it attracted £589m of net new assets last year, although this was down 20% on 2008.

Elsewhere, Scottish Provident posts new business figures of £37.3m while Royal London 360°, the group's offshore investment proposition reports new business figures of £25.4m.

Individual pensions new business at Scottish Life rose 22% to £124.5m and annuities 7% to £12.3m, but group pensions dropped 15% to £68m.

John Deane, chief executive of Royal London's intermediary division, says: "Across the market, the group side is still dominated by commission, which is unsustainable.

"This will change with the RDR, at which time, and even before, we will expect a level playing field with our charging model."

"The job now is to work with distributors to encourage them not to wait until 2012 to adopt adviser charging."

However Deane adds providers need to help advisers realise greater cost efficiencies around the new model, moving the RDR debate on from just talk about revenue.

On the protection side, while Bright Grey reports an increase in new busisness, there is still a lot which needs to be done to narrow the protection gap, Deane says.

But he warns: "It is a slow process. We need to help encourage people, and avoid  megaphone diplomacy."

Mike Yardley, Royal London Group CEO, paid particular attention to the performance of its pension propositions and businesses acquired during 2008, which included the former Resolution businesses.

"These are excellent results overall, in what has been a very difficult year for the life and pensions industry. Our expectation is that the majority of companies will be reporting a marked decline in new business levels."