Royal London new business up 56% in Q1

Royal London new life and pensions business increased by more than 50% in Q1 this year, led by a strong performance from its pensions arm Scottish Life.

Total new business for the three months to 31 March rose 56% to £775m, up from £498m for the previous quarter on a PVNBP basis.

At Scottish Life, new business soared 100% to £586m, up from £293m for the previous three months, benefiting from increased business levels due to last month's rise in the minimum pension age to 55.

However, these gains were partly offset by weaker performance from the protection side the business with a slowdown in the mortgage market a drag on sales.

Bright Grey new business dropped 17% to £37m, compared with £45m for Q4 2009.

Scottish Provident new business was also down, falling 13% to £48m, compared to £55m in Q4 2009.

Elsewhere, net new business at the Group's asset management arm RLAM soared by more than three times to £579m, up from £185m for Q4 2009, excluding cash mandates.

Wrap platform Ascentric also performed strongly, with new assets under administration up more than fivefold to £225m, compared to £39m at 31 December 2009.

Royal London 360°, the Group's international arm, also saw a slight increase in new business, up 2% to £78m for the quarter, from £76m.

Group chief executive Mike Yardley says: "Our two protection brands are being successful in attracting non-mortgage related business although the UK protection market remains very competitive.

"Overall, the life and pensions market remains difficult as the economic background continues to be uncertain. However I am confident that we can continue to grow profitable new business."

Royal London has confirmed it is in "early stage" talks with Royal Liver about a possible acquisition of the business but says "there is no certainty" an acquisition will take place.