Customers of life and pensions firm Royal London will share £199 million after its annual earnings jumped by nearly a fifth.
However, chief executive Barry O’Dwyer will retain his status as one of the highest-paid bosses in the mutual sector after receiving a 53% pay rise to £3.92 million last year.
The mutual said growth across pensions, protection and bulk purchase annuities pushed operating profits 18% higher to £327 million. New business sales rose 13% to £12.2 billion.
Royal London, which is investing in its Scottish headquarters in Edinburgh’s St Andrew Square, will make the payouts into its 2.4 million customers’ pensions and stocks and shares ISAs on 1 April.
It will bring the total paid under the profit share scheme to more than £2 billion since 2007. The profit share payout is a 10% rise on the £181m paid out last year.
Barry O’Dwyer, group chief executive, said: “We’re owned by our customers and, when we do well, they share in our success.
“In April, we will share £199 million with eligible customers through ProfitShare, bringing the total shared since 2007 to over £2 billion – a tangible demonstration of mutuality in action.”
The group said its workplace pensions business was its “largest source of new customers”, with 230,000 policyholders taken on in 2025, taking the total to 2.2 million.
Last September it also launched its new stocks and shares ISA, which also qualifies for profit share payouts.
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