In its annual result figures released today, the mutual said there had been “excellent growth in new business sales” and improved overall margin of 2% (+43% on 2014) on new life and pensions business thanks to operating efficiency initiatives across the business.

Operating profit before tax and exceptional items was £244m (+11% on 2014), attributed to growth in its pension and insurance businesses and the record new business figures. New business profits rose to £137m (2014: £85m).

Group funds under management £84.5bn (+3%) due to increased net inflows and investment performance. The ProfitShare to eligible sharholders will be £70m, up by 17% as a result of the improved new business results and strong capital position. This brings the cumulative ProfitShare paid to members to £536m since 2007, said the company.

Phil Loney, group chief executive, said: “Our strategy of focusing on creating the best outcomes and the best experience for our customers reflects our position as the largest customer-owned company across our chosen markets. Our strategy continues to produce pleasing results and over the last four years Royal London has doubled its life and pension sales and has nearly doubled assets under management.

“The last year saw a record breaking trading performance which brought with it a healthy increase in operating profit. New business growth was particularly strong, with sales of group pensions and income drawdown products going from strength to strength. The fourth quarter of the year saw pension sales reach new highs, which is particularly satisfying as it follows on from the announcement that we will in future be sharing part of our profits with pension customers through our unique ProfitShare arrangement.”

“Royal London remains well capitalised, with surplus regulatory capital increasing to £3,535m (£3,390m in 2014).”