Royal London said in its 2024 first-half results on Friday that its assets under management increased to £169 billion from £162 billion at the end of 2023.

The group said it continued to build its bulk annuity capabilities following the completion of two initial buy-in transactions with Royal London pension schemes and it remained “on track to enter the market in the second half of the year.”

Gross inflow rose to £16.3 billion (H1 2023: £15.0bn). Net inflows were impacted by £1.7 billion of external net outflows from Royal London’s global equity strategies following the departure of a number of members of the global equities team. Overall net inflows fell to £100,000 from £3.2 billion in the first half of 2023.

Royal London describes itself as “the largest mutual life, pensions and investment company in the UK.”  The group employs roughly 1,000 in Scotland and includes the former Scottish Life and Scottish Provident businesses.

First-half operating profit before tax increased 13% to £144 million.

Life and pensions new business sales rose 4% to £5.048 billion with growth in workplace pensions “offsetting the continued decline in defined benefit transfer business.”

The group said it continued to diversify its investment portfolio, including in UK life sciences through real estate infrastructure and its first investment into agriculture and natural capital following the acquisition of 21,000 acres of prime farmland.

Royal London reported continued growth in workplace pensions, welcoming 510 (H1 2023: 479) new workplace pension scheme employers and over 113,000 (H1 2023: 120,000) new workplace pension customers.

“The Governed Range, our flagship offering, attracted net inflows of £1.5bn (H1 2023: £1.7bn), with assets under management (AUM) reaching £66bn (31 December 2023: £60bn),” said the group.

Royal London CEO Barry O’Dwyer said: “The strength of our relationships with financial advisers and businesses offering workplace pension schemes has underpinned a 13% increase in group operating profit for the first half of 2024.

“When we perform well our customers benefit and, in April, we shared over £163 million with over two million eligible customers through our ProfitShare scheme.

“With an estimated £3 trillion invested in UK pensions, it is understandable pensions are viewed as being able to play a powerful role in supporting UK economic growth.

“However, it is important to remember the primary role of pensions is to fund customers’ retirement.

“The new Government has an opportunity to build on the success of automatic enrolment by creating a long-term plan that would have a positive impact on retirement outcomes while also generating investment to help finance growth.”