ICMIF member Royal London (UK) has announced that it will share GBP 146 million with eligible customers through its ProfitShare allocation.
Each year, Royal London aims to boost its customers’ retirement savings by adding a share of its profits to their plans. Despite the impacts of the pandemic, Royal London was able to demonstrate its resilience in difficult times and commitment to delivering value to its members. In April 2021, it will allocate GBP 146m of its profits from the previous year to the pension plans of around 1.8 million customers (a small increase from GBP 140 million in 2019).
In the announcement of Royal London annual results for 2020, Barry O’Dwyer, Group Chief Executive, commented: “As a mutual we are able to take a long-term approach despite short-term uncertainties. Our robust capital position has allowed us to continue our investment in systems and service to benefit our customers. Eligible customers will also benefit from a ProfitShare of GBP 146m, a unique feature of mutuality which enhances the value of their savings.”
ProfitShare is a discretionary enhancement to eligible Royal London customers with unit-linked or with-profits policies. The allocation is considered annually and depends on a number of factors.
Since the introduction of ProfitShare in 2007, Royal London has added more than GBP 1 billion to the value of eligible customers’ savings.
Power of mutuality
Royal London is the UK’s largest mutual insurer providing approximately 8.8 million life, protection, pensions and savings policies to people in the UK and Ireland.
Royal London strongly believes in the benefits of mutuality. As purpose-driven modern mutual, it is uniquely positioned to put the needs of its customers above all else and take a long-term approach despite the short-term uncertainties.
As a mutual, it can use its profits to invest in the things it believes benefit its customers most, as well as enhancing returns on eligible life and pensions policies, through ProfitShare.
Throughout its history it has always worked to tackle social issues. It was founded in 1861 by two young men who wanted to help people avoid the stigma of a pauper’s grave. Since then, it has continued help people to help themselves.
In 2020, Royal London proudly unveiled its new purpose as: Protecting today, investing in tomorrow. Together we are mutually responsible.
The articulation this purpose was shaped by employees, members, customers and partners to reflect different perspectives, and also to recognise the impact of the business on wider society.
The words used to describe Royal London’s purpose may have evolved over the years, but the sentiment behind it has always stayed true to its roots as a mutual. Its purpose will continue to guide the mutual insurer’s decision-making from the way it transforms its business to the positive impact it wants to have on society.