Mutual Royal London is to share £199m in profits with eligible customers in April after reporting a strong set of results today.
Operating profit at the company in 2025 was up 18% to £327m (FY2024: £277m).
The growth will mean a £199m profit share in April to be shared with eligible customers via the ProfitShare scheme, the company said.
Group AUM rose strongly last year to £199bn (FY2024: £173bn).
The company said during the year its Bulk Purchase Annuities did particularly well along with workplace pensions and adviser business was strong.
Net flows in asset management were £4.1bn (FY2024: £-1.0bn)
Barry O’Dwyer, group chief executive officer, said the company had seen “positive momentum” over the past year.
He 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.
“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 as a mutual 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.”
Mr O’Dwyer said 2025 had seen an increasing number of advisers using Royal London, helped by a broader savings products range including its individual and workplace pensions and a new Stocks and Shares ISA, which, like the firm’s pensions, qualifies for ProfitShare.
The company said that its flagship Governed Range, where most pensions customers are invested, attracted net inflows of £2.6bn (2024: £3.2bn), with assets under management (AUM) reaching £83bn (2024: £72bn).
Protection new business sales rose 17% to £991m (2024: £846m) and the Bulk Purchase Annuity (BPA) buy-in business performed “particularly strongly” in its first full year of trading, with 18 completed transactions and £1.3bn of premiums.
During the year the company expanded its Private Asset capabilities through new fund launches and the acquisition of Dalmore Capital.
Royal London is one of the UK’s largest mutual life, pensions and investment company and in the top 30 mutuals globally, it says.