Royal London recorded a 1% drop in life and pensions new business in 2007.
The fall has been attributed to a downturn in the mortgage market and “tough conditions” in protection.
Total new life and pensions business for the group dipped to £1.9bn last year, from £1.92bn in 2006.
Scottish Life new business was down 1% to £1.42bn, while like-for-like Royal London-branded new business also fell 14% to £150m.
However, Bright Grey new business climbed 12% to £173m, while gross new business for the firm’s asset management arm, RLAM, jumped 113% to £2.62bn.
Royal London group chief executive Mike Yardley says the “satisfactory results” demonstrate a shifting of focus to profitable business areas.
“This is most clearly demonstrated at Scottish Life where we have grown our individual pensions business whilst declining to compete aggressively in the cut throat group pensions market,” he says.
"Bright Grey had a very good year, especially when viewed against a background of the downturn in the mortgage market and the continuing tough conditions for sales of protection products across the market.”
Yardley says the 10% rise individual pensions sales demonstrates adviser interest in fee-based models.
"Scottish Life launched an Income Release facility within Pension Portfolio, and this has been receiving strong interest from advisers,” he says.
“Scottish Life's 'Financial Advisers' Fee' - a form of Customer Agreed Remuneration - continues to be used extensively by IFAs, with around 90% of new individual business now being written on a fee-based approach.”
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