Royal London pre-tax profit drops 45% as charge cap bites

clock

Royal London has reported a 45% slump in pre-tax profit in H1, pointing to regulatory charges as a key contributor, while its wrap platform Ascentric saw new business slide 20%.

The group said EEV pre-tax profit from continuing operations fell to £139m in the first half of 2014, while on an IFRS basis pre-tax profit was down 49% to £136m. It said the government's move to introduce charge caps and other regulatory charges on DC group pension schemes had cost it £61m. Phil Loney (pictured), group chief executive of Royal London, said the "headline-grabbing" charge-capping and other reforms introduced by the government will have precisely the opposite consequence to that which is intended. "As the leading customer-owned insurer in the UK we firmly support th...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Partner Insight: Playing Defence with Dividends

Partner Insight: Playing Defence with Dividends

Today’s equity markets are characterised by bouts of volatility, spurred by geopolitical tensions and macroeconomic uncertainties, mainly due to the start-stop nature of the US-initiated global trade war. This has investors seeking strategies that offer...

Reineke Davidsz and Najib Nakad @ VLK Investment Management
clock 10 July 2025 • 3 min read
Stock pickers urge caution over rapid return to US equities

Stock pickers urge caution over rapid return to US equities

Quilter and Fidelity

Linus Uhlig
clock 01 July 2025 • 1 min read
Deep Dive: US equities may not have peaked but do require greater selectivity

Deep Dive: US equities may not have peaked but do require greater selectivity

Amid equity rebalancing

Linus Uhlig
clock 13 June 2025 • 4 min read
Trustpilot