Royal London has reported “strong” new business and profit growth.

The firm’s financial results revealed after tax ‘ProfitShare’ at the mutual financial services firm was £142m, up from £114m in 2016.

Funds under management soared by 14% to £114bn, from £100bn in 2016.

The figures also showed individual pensions including drawdown new business sales, were up by 68% to £6,339m (2016: £3,778m).

Other report highlights included:

• New life and pensions business (PVNBP basis) up by 38% to £12,002m (2016: £8,686m)
• Overall new business margins remained broadly in line with the prior period at 1.8% (2016: 1.9%)
• Group Pensions new business sales were up by 12% to £4,346m (2016: £3,872m)

Commenting on the performance of Royal London Asset Management, a company statement read: “Royal London Asset Management (RLAM) continued to perform well, attracting external gross inflows of £10.4bn (2016: £6.7bn) arising from both Institutional and wholesale markets.

“Institutional clients such as pension schemes and local authorities, and wholesale clients such as wealth managers and IFAs, continued to buy our fixed income and cash funds.

“Our Sustainable range has also gained popularity.

“Funds under management increased to £114bn (31 December 2016: £100bn), with market conditions more stable in 2017 compared with 2016.”

Phil Loney, group chief executive of Royal London hailed the results, but said there was one area where “stability” was needed.

He said: “Pensions tax relief has been subject to no less than six cuts in the last seven years and we are asking the Government to commit to a five year moratorium on further changes.

“This would help to support consumer confidence in pensions just at the time that employer and employee contribution rates are set to increase as part of the auto-enrolment project.

“We continue to work closely with Government on the development of the Pensions Dashboard, a potential game-changer for consumers.

“Government should drive the initiative forward, making it compulsory for all schemes and pension providers to supply data that will inform consumer choice.”