Royal London has achieved record profits of £396m in 2018 thanks, in part, to inflows of £4.1bn from external clients.

The firm revealed the performance this morning saying the inflows and profits were both the largest it had ever achieved.

Elsewhere in the figures assets under management at the end of 2018 were £114bn, the same as the previous year.

The company blamed volatile market conditions and the sale of its Channel Islands business for the failure to grow assets under management.

Phil Loney, chief executive of Royal London, said: “It has been a record year for Royal London with EEV operating profit before tax reaching an all-time high of £396m. 

“This success has been shared with our members who will receive a ProfitShare of £150m for 2018, taking our total ProfitShare distribution to £942m since 2007. 

“Adding investment growth to that has allowed us to contribute over £1bn to our members’ policies since 2007, a real demonstration of the added value of mutuality.

“When we do well, so do our members.”

He added: “Looking ahead to 2019, our pensions business will continue to focus on helping customers to maximise their retirement income and more actively engaging our customers in the value of saving, encouraging them to make decisions about their financial futures.”

Regarding asset management Mr Loney said the firm was “focused on building broader and more diversified solutions to meet customer need through a range of product enhancements and new propositions.”

The company also pledged to continue to “consolidate, strengthen and build on the new technology” in the firm’s platform business.