It looks like Royal London won’t be courting any fellow mutuals in the foreseeable future.
The pensions giant, which recently reported £210 million in operating profit before tax for 2022, will only be open to a possible merger with a mutual if it was approached, according to a This is Money report.
The publication quoted Royal London group chief executive Barry O’Dwyer as saying: “There are no forced marriages in this sector – it would have to be a marriage of consent.”
The assertion comes following failed talks between Royal London and Liverpool Victoria Financial Services Limited (LV=), which wanted to cease being a mutual but was stopped by its members.
LV= tried to sell itself in recent years, receiving proposals from Royal London and private investment firm Bain Capital before announcing it would give mutuality another go.
“At the time we couldn’t understand why LV= needed to demutualise,” O’Dwyer was cited by This is Money as stating. “I think we’ve been proved right.”
Meanwhile, the 58% increase in Royal London’s operating profit before tax was attributed to the benefits from a continuing focus on cost control, growing the annuity portfolio, and consolidating and simplifying closed funds.