Royal London Asset Management (RLAM) has reported a 36% increase in pre-tax profits during 2011.
The fund management arm of Royal London group saw profits rise from £25m in 2010 to £34m for the year ending December 2011.
Phil Loney, group chief executive of Royal London, says: “Royal London’s financial strength is important since it allows us to grow our business, provides security for our policyholders and members, and enables us to deliver good financial returns to them.
“The group’s capital strength and stability have continued to improve, with all measures increasing during the year.”
He adds: “The economic environment is likely to remain uncertain for the foreseeable future and 2012 will be another difficult year.
“However, I believe that our financial strength, quality of products and services and strong market positions will enable the group to continue to perform well.”
Funds under management increased from £42.2 billion to £46.2 billion which includes the £2.3 billion of assets acquired from Royal Liver.
Royal London Group reports that its EEV [European Embedded Value] operating profit was up 37% to £334m from £243m in 2010. The group’s exposure to sovereign debt from Italy, Portugal, Ireland, Greece and Spain amounted to less than £82m, or 0.2% of the total assets on the balance sheet.
The group said that talks with The Co-operative Banking Group over the acquisition of its life, pensions and asset management businesses are progressing and that the acquisition is expected to be completed during 2012.