Royal London said the majority of its actively managed funds outperformed their benchmarks over three years, as the group reported higher profits and announced a £199m distribution to eligible customers.
The UK mutual life, pensions and investment company said 80% of its actively managed funds outperformed their three-year benchmark on an equally weighted basis, while 51% outperformed on an assets-under-management weighted basis.
The results came as the group reported operating profit up 18% in 2025, reflecting momentum across several areas of the business, including pensions, protection and bulk purchase annuities.
Barry O’Dwyer, group chief executive officer, said: “We recorded another strong performance in 2025 with operating profit up 18%, reflecting the positive momentum across our business. This was supported by our first full year in the bulk purchase annuities market, where we secured a series of key transactions as trustees and advisers valued the stability and long-term commitment that a mutual can offer.”
The firm’s flagship Governed Range investment portfolios, part of its workplace pensions offering, recorded £2.6bn of net inflows, with assets under management rising to £83bn, up from £72bn a year earlier.
“Workplace Pensions are core to our business, providing 2.2 million customers with access to our flagship Governed Range investment portfolios. Our continued success and long-term focus on customers are enabling us to invest £100m over the next three years to enhance our Workplace Pensions offer, allowing us to support an increasing number of employees with their retirement savings,” O’Dwyer said.
As a customer-owned mutual, Royal London said it would distribute £199m to eligible customers through its ProfitShare scheme, bringing the total shared since 2007 to more than £2bn.
“We’re owned by our customers and, when we do well, they share in our success. In April, we will share £199m with eligible customers through ProfitShare, bringing the total shared since 2007 to over £2bn – a tangible demonstration of mutuality in action,” O’Dwyer added.
The group also broadened its savings offering during the year with the launch of a stocks and shares ISA, available to both individual and workplace pension customers.
“We continue to focus on helping customers to make informed choices to build lasting financial resilience. In 2025, we saw an increasing number of advisers choosing Royal London to meet customers’ protection needs and we broadened our savings offering for our Individual and Workplace Pensions customers with the launch of our new Stocks and Shares ISA, which, like our pensions, qualifies for ProfitShare,” he added.
The group’s protection new business sales rose 17% to £991m, while the firm’s bulk purchase annuity division completed 18 transactions generating £1.3bn in premiums during its first full year in the market.
The group said its Irish business also recorded growth, with protection and pensions new business sales rising 64% to £488m.
