The company posted an operating profit of £246m, up almost 4% on the previous year’s £237m, not taking into account a one-off £97m gain made on the acquisition of Royal Liver in 2011.
New protection sales at Bright Grey and Scottish Provident rose 23% to £482m, while the group’s Republic of Ireland-based protection unit, Caledonian Life, saw a 344% increase in sales to £32m.
The rise more than offset lower new platform assets and a decrease in net inflows at Royal London’s asset management unit.
Elsewhere, the group said it paid a mutual dividend of £88m to with-profits policyholders last year after its open fund posted returns of 8.6%.
Phil Loney, group CEO, said: “We have delivered a good financial performance in 2012, with high levels of new business sales and good underlying levels of profitability across the group.
“These results represent my first full year as CEO. They are indicative of the strengths that we have in the market, our commitment to our members and policyholders and our core focus in delivering a strong and meaningful mutual alternative in the UK life and pensions and asset management markets.”
