Royal London has announced 2.3m customers are set to share in a £181 million ProfitShare payout as part of its results announcement this week.
A major pension company is set to payout £181 million to 2.3 million customers. Royal London has announced 2.3m customers are set to share in a £181 million ProfitShare payout as part of its results announcement this week.
Barry O’Dwyer, Group Chief Executive Officer, commented: “Royal London is customer-owned and is run for the benefit of customers, not shareholders. We share our profits with eligible customers and our ProfitShare scheme will distribute £181m to 2.3 million customers in April. This was underpinned by the business delivering an 11% increase in operating profit to £277m in 2024.
“Our customer focus means we continually enhance our offerings and digital services to help customers build their financial resilience, often partnering with independent financial advisers.
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“We have recently launched an innovative new online application process for individual pensions business, making it substantially easier for advisers to work with us.
“Our customer-first approach also appeals to employers wanting to pick the best possible offering and, in 2024, nearly 1,000 employers chose to establish a Royal London Workplace Pension scheme, very often moving from a shareholder-owned competitor.
“2024 also saw Royal London enter the bulk purchase annuity market, giving trustees the option of choosing the only customer-owned provider in this market.”
Tje ProfitShare of £181m is set to be shared in April 2025 with 2.3 million eligible customers who have pensions and life policies with Royal London. Last year, the provider rolled out new Workplace Pension schemes and 240,000 new scheme members (2023: 240,000).
Workplace Pensions new business sales were up by 19%, reflecting the increasing number of medium and large-sized employer scheme wins, it says. It also introduced a range of digital improvements to support customers to build their financial resilience, including a new contribution guidance tool and further enhancements to our pension consolidation service, helping to deliver a 39% increase in the number of Workplace Pension transfers.
It also paid 98.7% of protection claims, delivering £751m to over 65,000 customers and their families in the UK and Ireland.