Royal London has posted a significant increase in new business thanks to employers switching their auto-enrolment (AE) schemes from other providers.
The insurance company recorded £1.9bn of group pensions new business in the six months leading to 30 June, up 66% from £1.2bn in the same period in 2015.
Group chief executive Phil Loney (pictured) credited the growth to advisers recommending sponsoring employers move their AE provision to the company.
He said: "As the auto-enrolled market matures we are beginning to see a new trend; the growth of a secondary market as advisers recommend schemes move to take advantage of better quality scheme administration or investment options.
"Royal London has benefited from this trend, taking on schemes that have already auto-enrolled with our providers. This ‘flight to quality' introduces competition to the market and will result in better outcomes for scheme members."
The firm also reported a boost in its individual pensions and drawdown business, which together were up 17% on last year's interim results, from £1.5bn to £1.8bn.
However, with AE now focused on small and macro employers, the firm now expects growth to slow.
Loney added: "We have indicated that we expect a slowing of the rate of growth in workplace pensions for some time and this indeed is beginning to come through in the new business figures.
"As smaller employers are now starting to auto-enrol, the revenue from these schemes is lower than in earlier phases, which were dominated by larger schemes."
On a Solvency II basis, the insurer reported a surplus of £2.1bn, and a capital cover ratio of 166% as of 30 June.
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