Royal London suffers £762m loss

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Royal London Group made a £762m loss after tax last year and saw its capital surplus shrink by £1.1bn due to poor investment markets.

The weak performance comes despite a 6% rise in UK life and pensions business as Scottish Life increased its presence in the income drawdown market. On an IFRS basis, the group made a £432m loss after tax, down from a £130m profit during 2007. Performance was worst on an EEV basis, making a £762m loss after tax, compared with a profit of £173m in 2007. Royal London's Insurance Groups Directive (IGD) capital surplus fell to £773m at the end of 2008, down from £1.9bn at the end of 2007, a £1.1bn fall. The firm says £685m of the reduction is due to goodwill and assets acquired as part of i...

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