Scotland business

Scottish Life records sharp rise in new business

bank notes
Image caption Scottish Life saw a sharp rise in group pensions business

Pensions mutual Scottish Life has reported a 26% rise in new business in the past year.

The announcement came as parent company Royal London reported half-year pre-tax operating profit up by 19% to £113m.

It follows reforms to the financial advice market which mean advisers can no longer charge commission on products they recommend.

Scottish Life saw a rise of 54% in group pensions business, with the start of auto-enrolment for larger companies.

Individual pensions were up by 12%.

The present value of new business won in the first half of the year by the Edinburgh-based mutual was just under £1.47bn, whereas it was less than £1.17bn in January to June 2012.

'Positive prospects'

Measured as annual premium equivalent, it rose 25% to £188m.

Royal London chief executive Phil Loney said: "Despite a difficult UK market, I believe the long-term prospects for our business remain positive, with opportunities to further improve the quality of our products, service and investment performance for the benefit of our customers and members."

Royal London group funds under management were up 3% between December and June, to £51.1bn.

That is expected to increase by about £20bn, as it integrates its recent acquisition of the pensions and asset management arms of the Co-operative Bank.

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