Royal London Asset Management (RLAM), the asset management unit of Royal London, has reported total net inflows of £7.7bn for 2018.

This is a 21% surge from last year’s figure of £6.3bn.

Of the total inflows in 2018, £4.1bn came through external net flows from institutional and wholesale markets.

External net flows were £2.8bn in 2017.

The remaining £3.6bn of the total inflows was contributed by net internal inflows from the RLMIS life and pension business.

Funds under management totalled £114bn at the end of December 2018, flat compared to the previous year.

The performance was said to be affected by the divestiture of RLAM CI that led to £2bn in net outflow.

Ascentric wrap platform’s assets under administration were almost unchanged at £14.5bn as of 31 December 2018.

Overall, the group’s European Embedded Value (EEV) operating profit before tax soared 20% year-on-year to £396m.

Royal London group CEO Phil Loney said: “In 2018 the end of the auto-enrolment roll-out, turbulent market conditions as a result of ongoing Brexit uncertainty and the continuing low interest rate environment presented challenges to our sector.

“However I am pleased to report that we saw strong life and pensions new business sales with strong individual pension sales and increases in protection sales from our intermediary businesses both in the UK and Ireland and also our direct to consumer business.”

Loney added: “Our asset management business is focused on building broader and more diversified solutions to meet customer need through a range of product enhancements and new propositions.

“Royal London will continue to demand high governance standards from the companies in which we invest our members’ money and to expand our focus on socially responsible investment.”