Interim financial results 2026

Royal London

05 August 2026

 

Interim Results Announcement 2026                                                5 August 2026

 

Total ProfitShare passes £2bn as Royal London continues to share success with customers

Barry O'Dwyer, Group Chief Executive Officer, commented:

"As a customer-owned business, when we do well, our customers share in that success. In April, we distributed £199m to 2.4 million eligible customers, including new ISA customers, taking the total we've shared since 2007 to over £2bn - a clear demonstration of the value that mutuality can deliver.

"Our Workplace Pensions business continued to grow in the first half of 2026, as more customers chose to bring their pensions together with Royal London. We also launched our Targeted Support ISA service, making it easier for people to access the recommendations they need when making savings decisions.

"Our ongoing focus on delivering long-term value for customers helped to deliver a 13% increase in operating profit[a], allowing us to continue investing in enhancing services for their benefit. Built on our strong relationships with advisers and employers, our strategy positions us well to deliver for customers now and into the future."

Highlights

• Workplace Pensions new business sales increased 13%, with assets under management (AUM) reaching £43.6bn (31 December 2025: £38.0bn) as we welcomed 112,000 new scheme members, all of whom will be eligible for ProfitShare.
• The Governed Range, where most of our pension customers are invested, saw net inflows of £1.5bn (H1 2025: £1.6bn), with AUM reaching £92bn (31 December 2025: £83bn).
• UK Protection new business sales increased 6% to £483m (H1 2025: £455m), following enhancements to our income protection offering and continued momentum in high net-worth business.
• First provider to deliver a Targeted Support service, for our Stocks and Shares ISA, helping more people make informed investment decisions through simple, accessible and relevant recommendations.
• As the only mutual provider in the market, we made disciplined progress in our Bulk Purchase Annuity business, with nine transactions completed and £457m of premiums.
• Customer satisfaction³ rose again, with nearly half (48%) of customers rating Royal London 9 or 10 out of 10, up four points since last year.
• Active users of the Royal London app increased by nearly 30% year-on-year to 573,000 (H1 2025: 447,000) as we continued to enhance our digital services.
• Growing pipeline in RLAM as clients engage across a number of strategies, securing a £1.1bn Global Equities mandate from a European institution.
• In Ireland, new business sales increased 35% to £306m (H1 2025: £227m) driven by strong support for our pensions offering.

Financials

		Six months ended 30 June 2026	Six months ended 30 June 2025
UK GAAP	Group adjusted operating profit4	£187m	£166m
	Transfer to the fund for future appropriations5	£294m	£115m
New business	Life and pensions new business sales6	£6,155m	£5,885m
Inflows	Gross inflows7	£22,399m	£22,371m
	Net inflows7	£1,774m	£4,068m
		30 June 2026	31 December 2025
Funds	Assets under management8	£212bn	£199bn
Capital9 (Solvency II)	Regulatory View solvency surplus	£2.7bn	£2.5bn
	Regulatory View capital cover ratio	184%	183%
	Investor View solvency surplus	£2.7bn	£2.5bn
	Investor View capital cover ratio	188%	188%

• Group adjusted operating profit⁴ increased by 13% to £187m (H1 2025: £166m), supported by higher contributions from our Protection and Workplace Pensions propositions and the Asset Management business.
• Transfer to the fund for future appropriations (FFA)⁵ of £294m (H1 2025: £115m) includes the impact of positive economic movements.
• Life and pensions new business sales⁶ increased to £6,155m (H1 2025: £5,885m) supported by growth in Workplace Pensions.
• Gross inflows⁷ were £22.4bn (H1 2025: £22.4bn) with net inflows⁷ of £1.8bn (H1 2025: £4.1bn) driven by flows into RLAM's cash strategies and the Workplace Pensions business. H1 2025 was boosted by a £4.6bn multi asset mandate with St. James's Place.
• Assets under management⁸ increased to a record £212bn (31 December 2025: £199bn) driven by £1.8bn of net inflows and positive market movements of £11.5bn.
• Capital position remains robust, with Investor View and Regulatory View⁹ ratios of 188% (31 December 2025: 188%) and 184% (31 December 2025: 183%) respectively.

Interim results conference call

Royal London will hold a conference call to present its 2026 interim results on Wednesday 5 August 2026 at 08:30. Interested parties can register here. A copy of the presentation to investors is available on the Group's website.

For further information please contact:

Lora Coventry, Senior PR Strategy Manager ([e-mail] / 07919 170673)

About Royal London

Royal London is the UK's largest mutual life, pensions and investment company and is in the top 30 mutuals globally[b]. Working with advisers and customers, we provide long-term savings, protection and asset management products and services. Our Purpose - 'Protecting today, investing in tomorrow. Together we are mutually responsible' - drives us and defines the impact we want to have.

Financial calendar:

• 5 August 2026 - Interim Financial Results for 2026 and conference call
• 7 October 2026 - RL Finance Bonds No. 4 plc subordinated debt interest payment date
• 13 November 2026 - RL Finance Bonds No. 3 plc subordinated debt interest payment date
• 25 November 2026 - RL Finance Bonds No. 6 plc subordinated debt interest payment date

Notes to editors

1. The information in this announcement relates to The Royal London Mutual Insurance Society Limited ('RLMIS' or 'the Company'), and its subsidiary undertakings, together referred to as 'Royal London' or 'the Group'.
2. The Group assesses its financial performance based on a number of measures, some of which are not defined or specified in accordance with relevant financial reporting frameworks such as UK GAAP or Solvency II. These measures are known as Alternative Performance Measures (APMs). APMs are disclosed to provide further information on the performance of the Group and should be viewed as complementary to, rather than a substitute for, the measures determined according to UK GAAP and Solvency II requirements. Accordingly, these APMs may not be comparable with similarly titled measures and disclosures by other companies.
3. The Royal London Customer Value Statement (CVS) model tracks seven key pillars of importance across nearly 3,000 Royal London customers twice a year: Communicate, Membership, Resolution, Be Personal, Pay Out, Investment and Reputation. The results are reported by each factor and through an overarching CVS-weighted index that represents the percentage of customers rating the company 9 or 10 out of 10 overall.
4. Group adjusted operating profit is an APM and is the transfer to the fund for future appropriations before other comprehensive income excluding: short-term investment return variances and economic assumption changes (economic movements); gains/losses arising from acquisitions and other corporate transactions; ProfitShare; ValueShare; tax; and one-off items of an unusual nature that are not related to the underlying trading of the Group. Profits or losses arising within the closed funds are held within the respective closed fund surplus; therefore Group adjusted operating profit represents the result of the Royal London Main Fund (RL Main Fund) and the RLI DAC Open Fund. In HY25 and earlier periods, this metric was referred to as Group operating profit before tax and has been renamed to make clear that it is an APM; the basis of calculation is unchanged. All references to 'operating profit' and 'Group operating profit' in this document represent the APM measure 'Group adjusted operating profit'. References to 'UK', 'Asset Management' and 'Ireland' operating profit represent the relevant Result from operating segments included in the Segmental Information note to the Interim Financial Statements.
5. Transfer to the fund for future appropriations represents the statutory UK GAAP measure 'Transfer to the fund for future appropriations' in the technical account within the Consolidated statement of comprehensive income.
6. Life and pensions new business sales is an APM and represents life and pensions business only, excluding Asset Management and other lines of business. New business sales are presented as the Present Value of New Business Premiums (PVNBP), which is the total of new single premium sales received in the period plus the discounted value, at the point of sale, of the regular premiums the Group expects to receive over the term of the new contracts sold in the period. The rate used to discount the cash flows is derived from the opening swap curve at the start of the financial period for all new business except annuities, where the rate used is the future yield (less an allowance for downgrade and default risk) on assets expected to back these annuitant liabilities over the lifetime of the contract.
7. Gross and net flows incorporate flows into Royal London Asset Management (RLAM) from external clients (Asset Management flows) and those generated from the Group's life and pensions business. Asset Management net flows represent external client inflows less external client outflows, including cash mandates. Life and pensions net flows represent the combined premiums and deposits received (net of reinsurance) less claims and redemptions paid (net of reinsurance). Given its nature, non-linked Protection business is not included.
8. Assets under management (AUM) is an APM and represents the total of assets managed by, or on behalf of, the Group, including funds managed on behalf of third parties. This includes assets where the beneficial ownership interest resides with third parties (and which are therefore not recognised in the UK GAAP balance sheet) but on which the Group earns fee revenue. Where referenced, investment performance has been calculated for funds with a defined external benchmark on an equally weighted basis, by measuring the number of in-scope funds outperforming their three-year benchmark divided by the total number of in-scope funds and, on an AUM-weighted basis, by using a weighted average of active assets under management. Benchmarks differ by fund and reflect their mix of assets to ensure direct comparison. Performance calculations include cross-holdings and exclude passive funds.
9. The capital cover ratio is calculated as the Group's Own Funds, being the regulatory capital under Solvency II, divided by the Solvency Capital Requirement (SCR). The 'Investor View' is an APM and equals the RL Main Fund capital position (i.e. excluding ring-fenced funds). The 'Regulatory View' solvency surplus and capital cover ratio exclude the closed funds' surplus as a restriction to Own Funds. All capital figures are stated on a Group Partial Internal Model basis. All references to Solvency II in this document refer to the Prudential Regulatory Authority's solvency framework for UK insurers.
10. Figures presented throughout are rounded. The capital cover ratios and new business margins are calculated based on exact figures.

Business Review

As a customer-owned business, our Purpose - 'Protecting today, investing in tomorrow. Together we are mutually responsible.' - guides our focus on delivering in the long-term interests of our customers. This means helping customers build their financial resilience, while also playing our part in moving fairly to a sustainable world.

This focus is particularly important against a backdrop of heightened geopolitical and economic uncertainty during the first half of 2026. The period has been marked by conflicts in the Middle East and elsewhere, with consequent impacts on global markets, alongside a changing UK economic and political landscape. In times of uncertainty, advisers play a vital role in providing customers with reassurance. We have supported advisers with timely, proactive communications that include emphasising the importance of maintaining a long-term perspective on pension investments. Advisers and customers have continued to value the long-term focus and diversification of our Governed Range, which again attracted strong net inflows.

Workplace pensions remain one of the most effective vehicles for long-term saving in the UK. However, with continued pressure on household finances, the challenge of under-saving persists. Findings from the Pensions Commission's interim 2026 report, alongside our own research with Oxford Economics, show that current contribution levels are still not enough for many to achieve the standard of living they expect in retirement.

We are responding by strengthening our Workplace proposition. Through a three-year investment programme, we are focusing on enhancing digital journeys, deepening adviser and employer support, and helping more customers engage with, and take control of, their pensions savings. Our aim is to help advisers and employers deliver high-quality Workplace pension schemes and support scheme members to make informed choices that improve their retirement outcomes.

As more customers turn to digital services, we are continuing to build our capability in areas that will shape the future of financial support. We became the first UK provider to deliver a Targeted Support service, through our Stocks and Shares ISA, helping customers reach a recommendation in a simple and accessible way.

Our focus will continue to be on supporting customers through changing market conditions and helping them to meet their financial goals. Delivering on our strategy - empowering millions of people to take better financial decisions, harnessing technology to make it engaging and easy - will put us in a strong position to deliver enduring value for all our customers.

UK

We are focused on making it easier for customers and advisers to engage with our products and services through continued investment in digital services. This includes updates to the mobile app, with a simpler registration process, supporting increased engagement. Active mobile app users (customers logging in once in the last 12 months) rose by nearly 30% to 573,000 at H1 2026 (H1 2025: 447,000). We have also successfully gone live with moving to digital document delivery for some of our Workplace pension customers' statements and we are making it easier for customers to access their documents online or through our mobile app.

For advisers, we have also continued to deliver digital improvements, including digital letters of authority, adviser self-service functionality for retirement payments, and enhanced new business tracking, with improved navigation and visibility of client applications. We continue to improve our integration with adviser systems, successfully completing work to connect with advisers' flexible benefit platforms, which will make it easier for their members to view their Royal London pension online.

In our propositions, we delivered a series of enhancements across Workplace Pensions, improving adviser and employer reporting and strengthening the pension consolidation journey, supporting nearly 28,000 transfers, up 11% on the same period last year. We refreshed income protection occupational classes, improving terms for more than 700 occupations, and delivered the first phase of improved anniversary communications to help customers review and understand their cover.

As a result, overall pensions new business sales increased 5% to £4.7bn (H1 2025: £4.5bn). Workplace Pensions new business rose 13% to £2.4bn (H1 2025: £2.1bn), supported by higher transfer volumes and increased new entrants to existing schemes. We welcomed 112,000 (H1 2025: 110,000) new scheme members, taking the total number of Workplace customers we look after to 2.3 million.

Workplace AUM increased by 15% to £43.6bn, reflecting net inflows of £1.6bn and positive market movements, with continued strength in transfer volumes and conversion rates through our online transfer hub.

The Governed Range is our range of multi asset funds which primarily support our pensions proposition and are where most of our Workplace Pensions customers are invested. This flagship solution attracted net inflows of £1.5bn (H1 2025: £1.6bn), which, together with market growth, drove an increase in AUM to £92bn (31 December 2025: £83bn).

Given that the majority of Workplace Pensions customers invest through a default fund and remain invested over the long term, we regularly review and enhance the Governed Range to help deliver improved customer outcomes. In the second half of the year, we will evolve our main default investment option to ensure it continues to support good long-term outcomes into the future. Following the announcement of our acquisition of Dalmore Capital in May 2025, we committed to bringing infrastructure investments into the Governed Range to support more diversified and resilient long-term outcomes. We are committing an initial £200m investment through the Governed Range into a new Dalmore Capital fund, which is expected to launch in H2 2026.

Individual Pensions sales were £2.4bn (H1 2025: £2.4bn), reflecting a more challenging market with lower transfer activity, partly offset by higher single premium volumes following a strong tax year-end. Non-advised Income Release continued to grow, up 15% year-on-year, driven by increased use of our Retirement Planner tool. We also enhanced our support for advisers through the roll-out of practical tools and guides to help advisers implement retirement advice frameworks.

Protection new business sales increased 6% to £483m (H1 2025: £455m). This was driven by growth in income protection as we enhanced our proposition through the Personal Menu Plan, which allows customers to combine different protection benefits under a single plan, and continued momentum in high net-worth business in response to forthcoming changes to inheritance tax. During the first half of 2026, 98% of protection claims were paid out, providing £392m to over 29,000 UK customers and their families.

Our Bulk Purchase Annuity (BPA) business continued to build momentum following its first full year of trading in 2025. As the only mutual in the BPA market, our proposition continues to be well received by trustees and their advisers. While maintaining pricing discipline in a competitive market and continuing to meet our minimum return thresholds, we secured nine transactions (H1 2025: eight), with total premiums of £457m (H1 2025: £658m). The pipeline for the second half of the year is good, with two transactions secured since the period end. We remain on track to complete our first buyout this year.

Following its launch in September 2025, our Stocks and Shares ISA product delivered new business sales of £136m in the first half of 2026. Following the introduction of our Targeted Support for our ISA customers in April, we saw nearly 5,000 customers use this service to receive a ready-made solution, with 84% of customers saying that they felt more confident in investing as a result.

Customer satisfaction, as measured by our Customer Value Statement (CVS) score, improved by four percentage points from the end of 2025, with 48% of customers rating Royal London 9 or 10 out of 10 across each of seven key measures.

During the first half of 2026 we received industry recognition through key awards and accreditations. This included retaining our Gold rating in Defaqto's Pension Service Ratings. In Protection, we retained Best Overall Protection Provider from The Mortgage Advice Bureau and won Best Protection Provider 2026 at the Mortgage Strategy Awards 2026.

Asset Management

We continued to see good momentum and growth in our Asset Management business. Total AUM increased 6.7% to £212.5bn (31 December 2025: £199.2bn) driven by positive market movements of £11.5bn and net inflows of £1.8bn (H1 2025: £4.1bn), comprising Asset Management net inflows from external clients of £1.1bn and Life and pensions net inflows of £0.7bn.

This is against a backdrop of increased volatility, with the war in the Middle East contributing to higher oil prices and inflationary pressures, and central banks maintaining a more cautious stance on rate cuts. Global equity markets have been sensitive to these developments, while government bond yields remained volatile as policy expectations evolved, with credit markets relatively resilient despite subdued issuance. Our diversified approach across multi asset portfolios, including the Governed Range, has helped deliver a smoother return profile, with commodity exposure increasing resilience when both equities and bonds were under pressure.

Our investment performance remained competitive in challenging markets, with 73% of actively managed funds outperforming their benchmark on an equally weighted basis⁸ over the three years to 30 June 2026 (31 December 2025: 80%). On an AUM-weighted basis⁸, 46% (31 December 2025: 51%) of funds outperformed their benchmark. Peer rankings are positive for key Royal London open-ended investment companies (OEICs), with 77% (31 December 2025: 85%) of Royal London OEICs in the top two quartiles over the three-year period.

Our Asset Management net inflows of £1.1bn were driven by investors continuing to be attracted to our Cash funds, offsetting cyclical headwinds for some other franchises, such as the Sustainable range. Strong Global Equities investment performance resulted in a £1.1bn mandate from a European institution and we issued our second successful Collateralised Loan Obligation (CLO), raising over £0.4bn. We continue to see an improving pipeline as clients engage across a number of strategies.

Our Asset Management growth strategy continues to focus on diversifying our existing capabilities, extending into higher-fee private market asset classes, and selectively addressing international pools of demand.

The Private Assets business, including Private Debt, continues to expand, while assets under management in our Asset-Backed Securities strategy grew to nearly £2bn. We also continue to source assets to back the annuities business, supporting Royal London's growth in the BPA market through asset origination and liability matching. Dalmore Capital expects to launch its first new fund to external investors in H2 2026, supported by a £200m commitment from the Governed Range.

Our active ETFs, in a pan-European UCITS structure, are scheduled to be launched in the second half of 2026 and will mark an important milestone for our international expansion strategy.

We have continued to benefit from ongoing investment to modernise our operational infrastructure, embed responsible investment capabilities and enhance client experiences. In June we completed the consolidation of fund administration services for our Irish domiciled funds with HSBC, establishing a simpler and more scalable operating model, reducing operational risk and helping to improve client outcomes.

The business has received industry recognition, being awarded Fixed Income Manager of the Year (UK & Europe) at the Insurance Asset Risk Awards 2026. We also received the awards for Best ESG Solution for Advisers and Best Sustainable Fund (Sustainable World Trust) at the Professional Adviser Awards.

Ireland

Royal London Ireland delivered strong growth in the first half of 2026, with new business sales increasing 35% to £306m (H1 2025: £227m), driven by continued momentum in pensions, particularly through our Personal Retirement Savings Account (PRSA) product. We also maintained our leading position in the broker protection market.

Our focus on delivering for customers was demonstrated in April by the fourth consecutive award of ValueShare, Royal London Ireland's equivalent to ProfitShare, which uplifted the value of eligible customers' policies by 0.13%.

Broker sentiment remains strong, with brand positivity in our annual Broker Study rising to 89%. We are the leading choice for protection and continue to build momentum in pensions, with more than half of brokers surveyed expecting to increase the amount of pensions business placed with us in the next 12 months.

Customer experience remains a key strength, reflected in a Trustpilot rating of 4.9 out of 5, based on more than 3,000 reviews. During the period, we were also recognised as Best Mortgage Protection provider by bonkers.ie.

Looking ahead

Looking ahead, we will continue to focus on our strategy 'empowering millions of people to take better financial decisions, harnessing technology to make it engaging and easy'. We will support customers, employers and advisers in building long-term financial resilience, while maintaining a disciplined approach to growth in competitive markets.

We will further enhance our Workplace proposition, investing in capabilities to improve customer outcomes and engagement, and making it easier for employers and advisers to support their employees and clients, respectively. Alongside this, we will also build out our BPA offering, strengthening our position as the only customer-owned offering in this growing market, as schemes look to secure members' benefits with long‑term, trusted providers.

Through our Asset Management business, we will remain focused on delivering strong long-term investment outcomes, while continuing to develop our capabilities, including expanding our Private Assets offering and increasing access to infrastructure investments for Governed Range customers.

As a customer-owned organisation, we will remain focused on delivering long-term value for our customers, while continuing to support the communities in which we operate and initiatives that matter to them.

Financial Review

Group operating profit[c] for the six months ended 30 June 2026 increased by 13% to £187m (H1 2025: £166m), supported by higher contributions from our Protection and Workplace Pension propositions and our Asset Management business. The growth in our profits is allowing us to increase our investment in the business. This includes our previously announced three-year, £100m investment in our Workplace proposition which commenced in the first half of the year, as well as in new technology and digital capabilities to support our customers.

Assets under management reached a record £212.5bn, up £13.3bn since 31 December 2025, driven by £1.8bn of net inflows into RLAM's cash strategies and the Workplace Pensions business, together with positive market movements of £11.5bn.

The transfer to the fund for future appropriations (FFA) was £294m (H1 2025: £115m). This is stated after tax and includes £206m of positive economic movements reflecting returns that were higher than our long-term expectations.

Our capital position remains robust with the Solvency II Investor View capital cover ratio stable at 188% (31 December 2025: 188%). The Solvency II Regulatory View capital cover ratio was 184% (31 December 2025: 183%). We expect the investor ratio to reduce gradually over the short term as we continue to write BPA business and invest in additional capabilities.

Group adjusted operating profit

The following table shows the Group's adjusted operating profit for the six months ended 30 June 2026. Further details of the Group's segmental reporting are included in note 2 of the Interim Financial Statements.

	Six months  ended 30 June 2026 £m	Six months ended 30 June 2025 £m	Change £m
Long-term business
New business contribution	145	137	8
Existing business contribution	177	149	28
Contribution from AUM and other businesses	43	31	12
Business development costs	(37)	(29)	(8)
Strategic development costs	(44)	(30)	(14)
Amortisation of intangibles	(10)	(8)	(2)
Result from operating segments	274	250	24
Corporate items	(44)	(41)	(3)
Financing costs	(43)	(43)	-
Group adjusted operating profit	187	166	21

New business contribution

New business contribution rose to £145m (H1 2025: £137m), with Protection reflecting sustained demand for our propositions as customers focus on estate planning. BPA contribution reduced, reflecting lower average scheme sizes in a competitive pricing environment as well as higher costs as we continue to scale up our business. Overall, new business sales on a Present Value of New Business Premiums (PVNBP) basis increased to £6,155m, with new business margins increasing to 2.4%.

	New business contribution		PVNBP		New business margin
	Six months ended
	30 June 2026 £m	30 June 2025 £m	30 June 2026 £m	30 June 2025 £m	30 June 2026 %	30 June 2025 %
Workplace Pensions	43	38	2,363	2,086	1.8	1.8
Individual Pensions	27	31	2,355	2,399	1.1	1.3
Protection	50	30	483	455	10.3	6.7
Bulk Purchase Annuities	10	26	457	658	2.2	4.0
Individual Annuities and other	5	3	191	60	2.7	4.5
UK	135	128	5,849	5,658	2.3	2.3
Ireland	10	9	306	227	3.4	3.8
Total	145	137	6,155	5,885	2.4	2.3

UK

Workplace Pensions new business sales rose by 13% to £2,363m (H1 2025: £2,086m) supported by an 11% increase in the number of transfers to Royal London and 6% growth in new entrants to existing schemes. New business contribution increased to £43m in line with the higher overall sales, with new business margins steady at 1.8%.

Individual Pensions new business sales fell slightly to £2,355m (H1 2025: £2,399m) reflecting lower transfer volumes, partially offset by increases in our non-advised Income Release product and higher single premiums following a successful tax year-end campaign. Due to the change in business mix and higher costs, new business margins decreased by 0.2 percentage points to 1.1%, with new business contribution declining as a result to £27m (H1 2025: £31m).

Protection new business sales increased by 6% to £483m, with continued strong demand for 'Whole-of-Life' term products reflecting heightened customer focus on estate planning and wealth transfer. A favourable product mix has continued to increase new business margin to 10.3% (H1 2025: 6.7%), up from 8.7% in the second half of 2025. New business contribution rose to £50m (H1 2025: £30m).

BPA new business sales were £457m (H1 2025: £658m), with nine transactions completed during the first half of the year (H1 2025: eight), as we focused on opportunities that met our return requirements in a competitive market. New business contribution was £10m (H1 2025: £26m), with a lower new business margin of 2.2% (H1 2025: 4.0%), reflecting our disciplined approach to writing business while continuing to invest in scaling our BPA capability for future growth.

Individual Annuities and other new business sales increased to £191m (H1 2025: £60m) following the launch of our Stocks and Shares ISA in September 2025. New business contribution increased to £5m (H1 2025: £3m), with the lower new business margin of 2.7% (H1 2025: 4.5%) reflecting the change in product mix.

Ireland

New business sales increased to £306m (H1 2025: £227m), through increased Pensions sales of £212m (H1 2025: £133m), reflecting continued growth across our offerings, particularly our PRSA product. Protection new business sales were maintained at £94m (H1 2025: £94m). New business contribution rose to £10m (H1 2025: £9m), while new business margin decreased to 3.4% (H1 2025: 3.8%), reflecting the growth in the Pensions product within the overall sales mix.

Existing business contribution

Existing business contribution increased to £177m (H1 2025: £149m), summarised in the table below.

	Six months ended 30 June 2026 £m	Six months ended 30 June 2025 £m	Change £m
Expected return	148	141	7
Experience variances and assumption changes	23	30	(7)
Modelling and other changes	6	(22)	28
Total	177	149	28

Expected return for the period increased by £7m to £148m due to a higher level of assets at the start of the year.

Experience variances and assumption changes were a gain of £23m (H1 2025: £30m) driven mainly by higher than expected workplace premiums received, as annual salary increases and ad hoc payments into schemes were higher than assumed levels.

Modelling and other changes were a gain of £6m (H1 2025: charge of £22m).

Contribution from AUM and other businesses

Contribution from AUM and other businesses rose to £43m (H1 2025: £31m) due to a higher contribution from Royal London Asset Management as AUM increased, with the resulting growth in revenues more than offsetting the growth in the cost base as we continue to invest in our capabilities. The result also benefited from the Dalmore Capital acquisition which completed in November 2025.

Business development costs

Business development costs increased to £37m (H1 2025: £29m) as we continued to strengthen our propositions, predominantly in our UK and Asset Management segments. In the UK, costs were £26m (H1 2025: £20m), which included costs to improve customer engagement and our adviser and digital tools. Asset Management costs of £11m (H1 2025: £9m) included work to develop our ETF proposition and the consolidation of fund administration services referenced above.

Strategic development costs

Strategic development costs of £44m (H1 2025: £30m) represent the costs of long-term investments we are continuing to make across our businesses. In H1 2026 we commenced our programme of investment in our future Workplace Pensions proposition, alongside further investments to launch our Targeted Support service, develop our BPA capabilities and migrate customers onto newer technology.

Amortisation of intangibles

Amortisation of intangibles of £10m (H1 2025: £8m) relates to capitalised software assets.

Corporate items and financing costs

The net charge for Corporate items of £44m (H1 2025: £41m) includes costs arising from strengthening the Group's operational resilience, investing in our data capabilities and items relating to our defined benefit pension schemes.

Financing costs of £43m (H1 2025: £43m) continue to primarily represent the interest payable on the Group's subordinated debt.

Reconciliation of Group adjusted operating profit to transfer to the FFA

The transfer to the FFA of £294m (H1 2025: £115m) was higher than Group adjusted operating profit due to positive economic movements following returns over the first half of the year being higher than our long-term expectations.

	Six months ended 30 June 2026 £m	Six months ended 30 June 2025 £m	Change £m
Group adjusted operating profit	187	166	21
Economic movements	206	(39)	245
(Loss) / gain arising from acquisitions and other corporate transactions	(8)	9	(17)
Profit before tax and before transfer to the fund for future appropriations	385	136	249
Tax attributable to long-term business	(91)	(21)	(70)
Transfer to the fund for future appropriations	294	115	179

Economic movements

Economic movements include £161m (H1 2025: £116m charge) of short-term investment return variances from our longer-term expected return assumptions on the surplus assets of the RL Main Fund, for which the overall return was 4.0% during the period (H1 2025: 2.6%). It also includes a £30m gain (H1 2025: £68m gain) from changes to economic assumptions used to value liabilities, primarily due to changes in inflation rates. The remaining gain of £15m (H1 2025: £9m charge) comprises other economic-related modelling and other changes.

(Loss) / gain arising from acquisitions and other corporate transactions

The loss arising from acquisitions and other corporate transactions comprises amortisation of goodwill and acquisition-related intangible assets, including adjustments in respect of transactions agreed in prior periods.

Balance sheet

Our total investment portfolio[d] increased in value to £145.8bn (31 December 2025: £139.1bn), as a result of fair value movements in equity asset classes and positive life and pensions net flows. At 30 June 2026, £3,935m of assets were ring-fenced (31 December 2025: £3,416m) to back annuitant liabilities. This portfolio of assets continues to grow as we write more BPA business. It includes a mix of corporate bonds, gilts, cash, commercial real estate loans, income-producing real estate and infrastructure debt. Currently 14% of the ring-fenced portfolio is invested in illiquid assets. We continue to widen the breadth of assets eligible for backing annuity business as we extend our matching adjustment permissions, as well as utilising the Matching Adjustment Investment Accelerator while we progress the regulatory application process for new asset classes.

Our financial investment portfolio remains well diversified across a number of financial instrument classes, with the majority invested in equity securities and fixed income assets.

A significant portion of our debt securities portfolio is in high-quality assets with a credit rating of 'A' or above. In our non-linked portfolio, 75% (31 December 2025: 77%) of our non-linked debt securities and 68% (31 December 2025: 67%) of our non-linked corporate bonds had a credit rating of 'A' or better at 30 June 2026. There have been no significant defaults in our corporate bond portfolio.

Assets under management

AUM increased to £212bn (31 December 2025: £199bn), driven by net inflows of £1.8bn as summarised in the table below, and positive market movements of £11.5bn.

	Gross inflows		Net inflows/(outflows)
	Six months ended 30 June 2026 £m	Six months  ended 30 June 2025 £m	Six months ended 30 June 2026 £m	Six months ended 30 June 2025 £m
Asset Management flows	15,629	16,007	1,093	2,929
Pensions	5,930	5,444	1,403	1,607
Annuities	555	682	440	618
Longstanding customers and other life and pensions	285	238	(1,162)	(1,086)
Life and pensions flows	6,770	6,364	681	1,139
Total	22,399	22,371	1,774	4,068

'Asset Management flows' represents amounts from external clients into our Asset Management business. Net inflows were £1.1bn (H1 2025: £2.9bn), with H1 2025 having benefited from a £4.6bn multi asset mandate win from St. James's Place. H1 2026 net inflows were driven by inflows into cash strategies of £1.6bn and CLOs of £0.4bn, partially offset by outflows from multi asset solutions of £0.6bn and Sustainable strategies of £0.5bn.

'Life and pensions flows' represents amounts generated from our Life and Pensions business. Pensions net flows comprised a £1.6bn net inflow from Workplace Pensions (H1 2025: £1.5bn) and a £0.2bn net outflow from Individual Pensions (H1 2025: £0.1bn net inflow). Annuities net flows included £0.4bn of BPA net inflows (H1 2025: £0.6bn). Longstanding customers and other life and pensions flows were a net outflow of £1.2bn (H1 2025: £1.1bn), due to the continued run-off of products that are no longer open to new business.

Strength of our capital base

The strength of our capital base is essential to our business, both to ensure we have the capital to fund further growth and to give peace of mind to our customers that we can meet our commitments to them.

Managing our capital base effectively is a key priority for us. In common with others in the industry, we present two views of our capital position: an Investor View for analysts and investors in our subordinated debt, and a Regulatory View where the closed funds' surplus is excluded as a restriction to Own Funds.

We review our capital management framework regularly, although we would not expect the ranges we manage our capital within to change frequently. On an Investor View basis, we manage the capital cover ratio within an acceptable range, the lower end of which is 165%. In the ordinary course of business, we expect to operate with an investor ratio above 180%, although the ratio may fall below that level for a period as a result of investing for long-term growth or market events. Given the business is managed for the benefit of its members and customers on a long-term basis, the level of the investor ratio of the business may also be higher to provide flexibility for future investment in the business. We expect the Regulatory View solvency coverage ratio to be above 150%.

Key metrics	30 June 2026	31 December 2025
Regulatory View solvency surplus	£2,656m	£2,525m
Regulatory View capital cover ratio	184%	183%
Investor View solvency surplus	£2,656m	£2,525m
Investor View capital cover ratio	188%	188%

Both Regulatory and Investor View cover ratios have remained stable since 31 December 2025. The release from existing business has been more than sufficient to offset the aggregate impact of the strain from new business (which includes the strain from writing new BPA business), strategic development and corporate costs. Management actions have provided a small benefit in the period, notably from a recalibration of equity hedging positions to reflect movements in underlying market risks.

The Group's Solvency Capital Requirement reflects the diversified nature of our market and insurance risk exposures and, in particular, longevity risk written through our annuity businesses diversifies well with other risks of the in-force book of business.

Within the UK, Royal London has one closed fund, the RL(CIS) Fund. The capital position of this closed fund is managed on a standalone basis and continues to be well capitalised with the residual estate being distributed to policyholders over time.

We continue to monitor our capital position closely given market volatility and wider global economic pressures. Scenario testing performed as part of our regular capital management activities demonstrates that our capital position continues to be robust under a number of severe but plausible market scenarios.

The Solvency II leverage ratio[e] is 22% (31 December 2025: 23%), with the level of outstanding debt unchanged over the period.

Statement of directors' responsibilities

The Interim Results Announcement, including the Interim Financial Statements, is the responsibility of, and has been approved by, the directors.

In preparing the Interim Financial Statements, the directors:

• select suitable accounting policies and then apply them consistently;
• state whether applicable United Kingdom Generally Accepted Accounting Practice (UK GAAP) has been followed, subject to any material departures disclosed and explained in the Interim Financial Statements;
• make judgements and accounting estimates that are reasonable and prudent; and
• prepare the Interim Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

They are responsible for such internal controls as they determine are necessary to enable the preparation of Interim Financial Statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and the Group and to prevent and detect fraud and other irregularities.

The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Group.

Principal risks and uncertainties

The Board last reviewed the principal risks and uncertainties facing the Group in March 2026 at the time of the publication of the 2025 Annual Report and Accounts (ARA). The review took account of the ongoing economic conditions and the evolving geopolitical and regulatory environment. The Board considers that they have not changed significantly from those set out in the 'Principal risks and uncertainties' section of the Strategic Report within the 2025 ARA which can be accessed here.

The risks and uncertainties continue to be monitored and managed through our risk management system, including those related to the economy and Royal London's key markets, the risks associated with climate change and operational resilience, and the political and regulatory environment.

Forward-looking statements

Royal London may make verbal or written 'forward-looking statements' within this announcement, with respect to certain plans, its current goals and expectations relating to its future financial condition, performance, results, operating environment, strategy and objectives. Statements that are not historical facts, including statements about Royal London's beliefs and expectations and including, without limitation, statements containing the words 'may', 'will', 'should', 'continue', 'aims', 'estimates', 'projects', 'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates', and words of similar meaning, are forward-looking statements. The statements are based on plans, estimates and projections as at the time they are made and involve unknown risks and uncertainties. These forward-looking statements are therefore not guarantees of future performance and undue reliance should not be placed on them.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, some of which will be beyond Royal London's control. Royal London believes factors could cause its actual financial condition, performance or other indicated results to differ materially from those indicated in forward- looking statements in the report. Potential factors include, but are not limited to: geopolitical conditions; the impact of international unrest and conflicts; UK and Ireland economic and business conditions; future market-related risks such as adverse changes in interest rates; the performance of financial markets generally; the policies and actions of governmental and regulatory authorities (for example, new government initiatives); the impact of competition; the effect on Royal London's business and results from, in particular, mortality and morbidity trends, lapse rates; and the timing, impact and other uncertainties of future mergers or combinations within relevant industries. These and other important factors may, for example, result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits.

As a result, Royal London's future financial condition, performance and results may differ materially from the plans, estimates and projections set forth in Royal London's forward-looking statements. Royal London undertakes no obligation to update the forward-looking statements in this announcement or any other forward-looking statements Royal London may make. Forward-looking statements in this announcement are current only at the date on which such statements are made. This announcement has been prepared for the members of Royal London and no one else. None of Royal London, its advisers or its employees accept or assume responsibility to any other person and any such responsibility or liability is expressly disclaimed to the extent not prohibited by law. The Royal London Mutual Insurance Society Limited is registered in England and Wales (99064) at 80 Fenchurch Street, London, EC3M 4BY. www.royallondon.com.

Interim Financial Statements

Consolidated statement of comprehensive income

for the period ended 30 June 2026

	Group
Technical account - long-term business	Six months  ended 30 June 2026 (unaudited) £m	Six months  ended 30 June 2025 (unaudited) £m	Year ended  31 December 2025 £m
Gross premiums written	1,158	1,318	2,997
Outwards reinsurance premiums	(250)	(281)	(583)
Earned premiums, net of reinsurance	908	1,037	2,414
Investment income	3,597	2,380	5,697
Unrealised gains on investments	6,850	253	7,711
Other income	429	358	786
Total income	11,784	4,028	16,608
Claims paid
Gross claims paid	(1,739)	(1,602)	(3,365)
Reinsurers' share	373	366	756
Change in provision for claims
Gross amount	(31)	(17)	(19)
Reinsurers' share	3	(5)	(34)
Claims incurred, net of reinsurance	(1,394)	(1,258)	(2,662)
Change in long-term business provision, net of reinsurance
Gross amount	(597)	(134)	(1,503)
Reinsurers' share	(62)	(23)	(290)
	(659)	(157)	(1,793)
Change in technical provision for linked liabilities, net of reinsurance	(9,039)	(1,968)	(10,732)
Change in technical provisions, net of reinsurance	(9,698)	(2,125)	(12,525)
Change in non-participating value of in-force business	480	179	299
Net operating expenses	(402)	(336)	(720)
Investment expenses and charges	(230)	(216)	(456)
Other charges	(155)	(136)	(283)
Total operating expenses	(787)	(688)	(1,459)
Profit before tax and before transfer to the fund for future appropriations	385	136	261
Tax attributable to long-term business	(91)	(21)	(94)
Transfer to the fund for future appropriations	294	115	167
Balance on technical account - long-term business	-	-	-
Other comprehensive income, net of tax:
Remeasurement of defined benefit pension schemes	31	(8)	(28)
Foreign exchange rate movements on translation of Group entities	(4)	8	13
Transfer to/(deduction from) the fund for future appropriations	27	-	(15)
Other comprehensive income for the period, net of tax	-	-	-
Total comprehensive income for the period	-	-	-

As a mutual company, all earnings are retained for the benefit of participating policyholders and are carried forward within the fund for future appropriations. Accordingly, the total comprehensive income for the period is always £nil after the transfer to or deduction from the fund for future appropriations.

Consolidated balance sheet

as at 30 June 2026

	Group
	30 June 2026 (unaudited) £m	30 June 2025 (unaudited) £m	31 December 2025 £m
ASSETS
Intangible assets
Goodwill	83	31	90
Negative goodwill	(17)	(22)	(20)
	66	9	70
Other intangible assets	202	131	210
	268	140	280
Non-participating value of in-force business	3,863	3,264	3,383
Investments
Land and buildings	88	49	36
Other financial investments	35,244	33,398	35,071
	35,332	33,447	35,107
Assets held to cover linked liabilities	110,503	94,516	104,017
Reinsurers' share of technical provisions
Long-term business provision	2,859	3,233	2,967
Claims outstanding	(64)	136	156
Technical provisions for linked liabilities	158	(54)	(66)
	2,953	3,315	3,057
Debtors
Debtors arising out of direct insurance operations	180	155	57
Debtors arising out of reinsurance operations	42	76	57
Other debtors	3,915	3,924	3,375
	4,137	4,155	3,489
Other assets
Deferred taxation	5	7	7
Tangible fixed assets	71	25	28
Cash at bank and in hand	716	566	454
	792	598	489
Prepayments and accrued income
Deferred acquisition costs on investment contracts	52	49	49
Other prepayments and accrued income	124	76	77
	176	125	126
Pension scheme asset	159	154	134
Total assets	158,183	139,714	150,082

LIABILITIES
Subordinated liabilities	1,286	1,285	1,286
Fund for future appropriations	4,729	4,371	4,408
Technical provisions
Long-term business provision	32,819	30,978	32,306
Claims outstanding	458	422	428
	33,277	31,400	32,734
Technical provisions for linked liabilities	110,312	94,275	103,804
Provisions for other risks
Deferred taxation	290	122	214
Other provisions	188	150	177
	478	272	391
Creditors
Creditors arising out of direct insurance operations	303	325	292
Creditors arising out of reinsurance operations	1,420	1,511	1,494
Amounts owed to credit institutions	103	117	61
Other creditors including taxation and social security	6,163	6,017	5,430
	7,989	7,970	7,277
Accruals and deferred income	112	141	182
Total liabilities	158,183	139,714	150,082

Notes to the Interim Financial Statements

1.  Basis of preparation

The Interim Financial Statements of the Group have been prepared in accordance with the recognition and measurement requirements of UK accounting standards, including Financial Reporting Standard (FRS) 102, 'The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland' and FRS 103, 'Insurance Contracts'.

The accounting policies applied in the Interim Financial Statements are the same as those applied in the Group's 2025 ARA, except for changes arising from the adoption of amendments to FRS 102 effective from 1 January 2026. While not material, the most significant impact of these amendments relates to lease accounting. Under the revised requirements, leases are recognised on the balance sheet through the recognition of a right-of-use asset and a corresponding lease liability, measured at the present value of future lease payments. The right-of-use asset is depreciated over the lease term and the lease liability is subsequently measured using the effective interest method.

Full details of the Group's UK GAAP accounting policies, except where updated by the changes described above, are set out in the 2025 ARA, which is available on the Royal London website here.

The reporting rules applicable for the Group do not require compliance with the requirements of FRS 104 'Interim Financial Reporting' and these Interim Financial Statements have not been prepared in compliance with the disclosure requirements of that standard. The Interim Results Announcement for the period ended 30 June 2026 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The comparative results for the full year 2025 have been taken from the Group's 2025 ARA unless stated otherwise. The Group's 2025 ARA has been reported on by the Group's auditor and filed with the Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The Interim Financial Statements have been prepared on a going concern basis under the historical cost convention, as modified by the inclusion of certain assets and liabilities at fair value as permitted or required by FRS 102.

The Group regularly performs sensitivities and stress testing on a range of severe but plausible scenarios. Stress testing has been performed on the capital position for severe adverse economic and demographic impacts arising over the short-to-medium term, and on the liquidity position for severe adverse economic impacts over the short term. The most adverse scenarios contain severe but plausible assumptions including adverse economic and insurance risk impacts, prolonged effects from cost-of-living pressures and subdued financial markets, significant third-party failure and the effects of climate change on economic and insurance risks. There are a range of management actions, both in the RL Main Fund and the closed RL (CIS) Fund available to the directors in stress scenarios which could be considered if there were a deterioration in the capital and/or liquidity position of the Group, to restore the position to within risk appetite.

Sufficient liquidity is available to settle liabilities as they fall due and the capital and liquidity positions remain sufficient to cover capital and liquidity requirements respectively in all scenarios tested.

Having considered these matters and after making appropriate enquiries, the directors are satisfied that the Group has adequate resources to continue to operate as a going concern for a period of at least 12 months from the date of approval of the Interim Financial Statements. For this reason, they consider it appropriate to continue to adopt the going concern basis in preparing the Interim Financial Statements. The directors have also concluded that there are no material uncertainties over the Group's ability to adopt the going concern basis of accounting.

2.  Segmental information

Operating segments

The operating segments reflect the level within the Group at which key strategic and resource allocation decisions are made, and the way in which operating performance is reported internally to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Company's Board of Directors.

The activities of each operating segment are described below.

UK

The UK business provides propositions to customers, employers and pension scheme trustees, primarily through intermediaries. Products offered include workplace and individual pensions, as well as protection products, ISA savings, bulk purchase annuities and other later life offerings.

Asset Management

The Asset Management business provides investment propositions to Royal London's life and pensions customers and to external institutional and wholesale clients, primarily through intermediaries.

Ireland

The Ireland business provides propositions to customers through brokers. Products offered include individual pensions and protection products.

Group adjusted operating profit

A key measure used by the Company's Board of Directors to monitor performance is Group adjusted operating profit, which is classed as an APM. The Company's Board of Directors considers that this facilitates comparison of the Group's performance over reporting periods as it provides a measure of the underlying trading of the Group.

Group adjusted operating profit excludes short-term investment return variances. Expected return, therefore, represents the longer-term investment return expected to be generated by the net assets of the Royal London Main Fund and the RLI DAC Open Fund. This is applied to assets held at the start of the year, based on economic assumptions at that date, and to bulk purchase annuities written during the period. Any differences between the expected and actual investment return are shown outside of Group adjusted operating profit within Economic movements.

The results by segment, forming part of the Group's adjusted operating profit, are shown in the following table.

	Group
	Six months ended 30 June 2026 (unaudited)
	UK £m	Asset Management £m	Ireland £m	Total £m
Long-term business
New business contribution	135	-	10	145
Existing business contribution	177	-	-	177
Contribution from AUM and other businesses	(1)	44	-	43
Business development costs	(26)	(11)	-	(37)
Strategic development costs	(42)	-	(2)	(44)
Amortisation of intangibles	(7)	(3)	-	(10)
Result from operating segments	236	30	8	274
Corporate items				(44)
Financing costs				(43)
Group adjusted operating profit				187

	Group
	Six months ended 30 June 2025 (unaudited)
	UK £m	Asset Management £m	Ireland £m	Total £m
Long-term business
New business contribution	128	-	9	137
Existing business contribution	148	-	1	149
Contribution from AUM and other businesses	1	30	-	31
Business development costs	(20)	(9)	-	(29)
Strategic development costs	(29)	-	(1)	(30)
Amortisation of intangibles	(5)	(3)	-	(8)
Result from operating segments	223	18	9	250
Corporate items				(41)
Financing costs				(43)
Group adjusted operating profit				166

	Group
	Year ended 31 December 2025
	UK £m	Asset Management £m	Ireland £m	Total £m
Long-term business
New business contribution	264	-	17	281
Existing business contribution	285	-	2	287
Contribution from AUM and other businesses	7	67	-	74
Business development costs	(46)	(22)	-	(68)
Strategic development costs	(73)	-	(2)	(75)
Amortisation of intangibles	(12)	(6)	-	(18)
Result from operating segments	425	39	17	481
Corporate items				(67)
Financing costs				(87)
Group adjusted operating profit				327

---

[a] 'Operating profit' represents the APM measure 'Group adjusted operating profit'.

[b] Based on total 2024 premium income. International Cooperative and Mutual Insurance Federation Global data, 2026.

[c] References to 'Group operating profit' represents the APM measure 'Group adjusted operating profit'.

[d] The investment portfolio is the total of 'Investments' and 'Assets held to cover linked liabilities' in the Group balance sheet.

[e] Solvency II leverage ratio is the Solvency II value of the Group's outstanding debt (which is entirely subordinated liabilities) divided by the Group's Solvency II Own Funds (Regulatory View).

 

END