Financial results

-EEV profit before tax and mutual dividend £336 million (+45%)1
-IFRS profit before tax and mutual dividend £321 million (+111%)1
Return to with-profit policyholders

-Mutual dividend £88 million2 (2011 £88m)
-Investment performance on assets backing Royal London Open Fund 8.6% (2011 6.0%)
-Bonuses added to with-profits policies £282 million (2011 £231m)
Operating results (excluding the impact of economic variances)

-EEV operating profit £246 million (2011 £237m before recognition of £97m (before tax) Royal Liver gain)
-Total new life and pensions business £3,524 million (+7%)
-EEV profit3 from new business £108 million (+13%)
Capital strength

-Regulatory (Insurance Group Directive) capital surplus £2,374 million (+25%)
Asset management

RLAM, fund management

-Gross new business inflow £2,264 million (+66%)
-Total funds under management £47.6 billion (+8%)
Ascentric, Wrap platform

-New assets under administration £1,210 million (-8%)
-Total assets under administration £5,147 million (+41%)
1 2011 figure included £97m (before tax) one-off gain from the acquisition of Royal Liver.
2 The mutual dividend is our way of sharing our profits with our members, through enhancing the asset shares of qualifying with-profit policies.
3 Grossed up at 23% (2011 26%) for the current rate of corporation tax, to aid comparability with proprietary companies.

Group Chief Executive’s statement

Phil Loney, Group Chief Executive of Royal London, said:

Profits, sales & investment returns…
"We have delivered a good financial performance in 2012, with high levels of new business sales and good underlying levels of profitability across the Group.

"These results represent my first full year as CEO of the Royal London Group. They are indicative of the strengths that we have in the market, our commitment to our members and policyholders and our core focus in delivering a strong and meaningful mutual alternative in the UK life and pensions and asset management markets.

"We returned good value to our with-profits policyholders in 2012, through investment returns that were 0.8% ahead of the relevant benchmark, and bonuses which continue to represent a good return compared to our key competitors.

"Our capital surplus increased substantially in 2012, as a result of our operating performance and improved year-end financial markets. Our improved capital strength provides security to our members and policyholders and enables us to deliver improved returns back to our members.