Royal London sees sales lifted by its takeovers

Royal London is part of a dying breed — it's a mutual insurer owned by its policyholders — but today it suggested there could be some life in the sector yet.

It saw sales up 8% in the first nine months of the year to £1.85 billion, though that does include the effect of businesses it acquired in 2008.

Critics of the company wonder why it does takeovers, arguing that this fulfils the ambitions of management rather than aids the supposed owners, the customers.

Chief executive Mike Yardley sees benefits in scale. "We are increasing the total amount of profitable new business despite the uncertain economic backdrop," he said.

Royal has funds under management of £35 billion and four million policyholders.