Royal London reports profit rise as UK pension activity surges ahead of inheritance tax change

Royal London announced a 13% increase in adjusted operating profit for the first half of 2026, with group profit reaching £187 million and assets under management hitting a record £212 billion. The mutual added 112,000 workplace scheme members and its ProfitShare scheme has now distributed more than £2 billion to customers since 2007.

The firm also highlighted a surge in pension market activity as the UK government prepares to bring pensions into the scope of inheritance tax from April 2027. New pension sales rose 5% to £4.7 billion, driven by heightened consumer focus on retirement planning. CEO Barry O’Dwyer warned the scramble shows “no sign of slowing down” and urged the Treasury to provide clear guidance.

These developments reflect both strong financial performance for Royal London and broader market reactions to upcoming tax policy changes affecting UK pension savers.