Royal London will distribute £199m to 2.4 million customers through its annual ProfitShare scheme, with payments starting on 1 April.
The payout, which is based on the value of a customer’s pension or ISA savings, follows an 18 per cent rise in adjusted operating profit to £327m, supported by growth in pensions, higher protection contributions and a full year of trading from the Bulk Purchase Annuity (BPA) business.
The Governed Range saw net inflows of £2.6bn, taking assets under management to £83bn, while total group assets reached a record £199bn, including £6bn from Dalmore Capital. Life and pensions new business sales rose 13 per cent to £12.2bn.
Meanwhile, customer satisfaction remained steady, with 44 per cent rating Royal London nine or 10 out of 10, and 70 per cent rating the firm seven or higher. The ProfitShare payment continues the firm’s approach of sharing its financial performance with customers.
Royal London group chief executive officer Barry O’Dwyer says: “We recorded another strong performance in 2025 with operating profit up 18%, reflecting the positive momentum across our business. This was supported by our first full year in the bulk purchase annuities market, where we secured a series of key transactions as trustees and advisers valued the stability and long-term commitment that a mutual can offer.
“Workplace Pensions are core to our business, providing 2.2 million customers with access to our flagship Governed Range investment portfolios. Our continued success and long-term focus as a mutual on customers are enabling us to invest Ј100m over the next three years to enhance our Workplace Pensions offer, allowing us to support an increasing number of employees with their retirement savings.
“We’re owned by our customers and, when we do well, they share in our success. In April, we will share Ј199m with eligible customers through ProfitShare, bringing the total shared since 2007 to over Ј2bn – a tangible demonstration of mutuality in action.
“We continue to focus on helping customers to make informed choices to build lasting financial resilience. In 2025, we saw an increasing number of advisers choosing Royal London to meet customers’ protection needs and we broadened our savings offering for our Individual and Workplace Pensions customers with the launch of our new Stocks and Shares ISA, which, like our pensions, qualifies for ProfitShare.”