Rlam new business plummets 67 per cent in 2011

Royal London revealed this morning that new business levels were up at all its providers with the exception of Royal London Asset Management

Scottish Life’s new business was up four per cent last year to £2,251m, compared with £2,159m in 2010. Royal London 360’s new business was up 21 per cent to £398m and Bright Grey and Scottish Provident’s new business was up 17 per cent to £393m, compared with £337m in 2010.

Wrap Ascentric’s new assets under administration was up eight per cent to £1,309m, compared with £1,217m in 2010

However at RLAM, excluding cash mandates, net new business was down 67 per cent to £379m, compared with £1,133m the year before.

Phil Loney, group chief executive of Royal London, said: “2011 has been a very challenging year as austerity measures in the UK continue to bite and the economic backdrop remains difficult.

“I am therefore pleased to report an increase in new business for the year, with all our operating businesses performing well. This reflects our focus on providing quality products and excellent service.

“Our protection businesses and Royal London 360˚ have delivered double digit growth; Scottish Life and Ascentric have built on their considerable achievements of the past few years; and Rlam has once again delivered positive net new business, which is commendable in the current environment.

“Our plans assume that market conditions will remain uncertain and difficult in 2012, but we remain focussed on delivering good performance, in terms of both new business and financial results.”

The main growth at Scottish Life in 2011 was group pensions, up 48 per cent compared with 2010.

The 17 per cent increase in new business in the protection division came at the same time as the bedding-in of a single sales force for Bright Grey and Scottish Provident.

According to Mr Loney, RLAM’s long term performance remains strong despite the prevailing economic environment, ongoing market volatility and uncertain outlook.

A significant portion of policyholder funds, external retail and institutional client monies are invested through RLAM’s equity and bond collective investment schemes (Oeics).

Over the 12 months to the end of December, half of these funds achieved a first or second quartile ranking, outperforming their respective IMA sector averages.

For the three years to the end of December, more than 80 per cent of funds are ranked in the first or second quartile.

During 2011, RLAM launched three new funds: the UK Ethical Equity fund, the Cash Plus fund and the International Government Bond fund.

Ascentric reported total assets under administration are now £3.7bn, a 48 per cent increase on the end of 2010.