Royal London Group lost £2m in the first half of 2010, compared with an £18m profit last year.
The IFRS loss before tax was due to investment returns dropping significantly below expectations, the mutual life company reports. IFRS loss after tax was £31m.
Operating profit on an EEV basis advanced 3% to £111m while the total present value of new life and pensions business premiums was up 35% to £1,615m.
Protection new business was hit hard by the downturn in the property market, with value down to £12.1m from £17m in H1 last year.
Life and pensions new business rose from £40.9m in 2009 to £51.2m in H1.
Meanwhile, Royal London Asset Management saw new business levels drop from £7.5m last year to £1.1m.
Outgoing group CEO Mike Yardley says: "Increasing our EEV operating profit to £111m is a good result given the current economic environment.
"We continue to focus on our core markets - pensions, protection and asset management - and on writing profitable new business.
"The success of this strategy is demonstrated by the continuing significant improvements in the contribution from new business. Compared with the first six months of 2009, overall margins for new life and pensions business were fairly stable at 3.2%."
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