Royal London’s group pension business surged by 86 per cent in the first quarter of 2016 compared to the same quarter last year, up to £959m on a present value of new business premiums (PVNBP) basis. But the provider predicts this momentum will slow as smaller employers with lower premium business reach their auto-enrolment staging date.
Income Drawdown new business was up 19 per cent in Q1 2016 compared the same period in 2015. Assets under management grew by 4 per cent in Q1 compared to Q4 of 2015.
Royal London group chief executive Phil Loney: “The first quarter of 2016 has repeated the record-breaking pattern established throughout 2015.
“Our new Consumer division which looks to bring real value to areas of the market where there has been little competition historically is now a significant source of new business in its own right. It focuses on simple products offering better value for money and fairer customer outcomes than our competitors. We continue to concentrate on a non-advised offering to customers who will not or do not utilise regulated financial advisers.
While new business growth remains robust I anticipate that group pensions will see a slowing of momentum in coming quarters. While we continue to bring on board large numbers of schemes, we anticipate that the average premium will be lower as more smaller employers enrol their workforces into a pension.”