Quilter’s 2025 results: back in the black, cash returns on the way
Quilter PLC has swung back to profit for 2025, lifted by stronger markets, steadier policyholder tax timing and continued cost discipline. The board has paired that with a proposed final dividend and a new share buyback, signalling confidence in the capital position.
Key numbers investors should know
| Metric | 2025 | 2024 |
|---|---|---|
| IFRS profit before tax | £324 million | £35 million |
| Profit/(loss) before tax – shareholder returns | £163 million | £(60) million |
| Profit/(loss) after tax (owners) | £120 million | £(34) million |
| Adjusted profit before tax | £207 million | £196 million |
| Adjusted total net revenue (APM) | £701 million | £670 million |
| Operating expenses within adjusted profit (APM) | £494 million | £474 million |
| Basic EPS (IFRS) | 8.9p | (2.5)p |
| Adjusted basic EPS (APM) | 11.4p | 11.0p |
| Proposed Final Dividend | 4.3p per share (£58m) | not disclosed |
| UK Solvency II surplus | £876 million | £851 million |
| UK Solvency II coverage ratio | 204% | 219% |
| Customer remediation provision (year-end) | £42 million | £76 million |
What drove the turnaround?
Two big levers: firmer markets and a cleaner tax line. Investment return rose to £8,607 million (2024: £4,877 million), which feeds policyholder funds but also supports fee-bearing assets. Quilter’s adjusted total net revenue – the cleaner measure of underlying income – improved to £701 million, outpacing the rise in operating expenses to £494 million, lifting adjusted profit before tax to £207 million.
Net interest income helped again, with £63 million earned on shareholder cash (2024: £71 million) and £30 million retained from customer cash balances (2024: £31 million). The group’s unit pricing changes in late 2024 also calmed the volatility from “policyholder tax” – tax that policyholders economically bear but runs through Quilter’s accounts. The policyholder tax adjustment within adjusted profit was a minimal £2 million charge this year (2024: £90 million credit).
Segment snapshot: Affluent leads, HNW steady
Adjusted profit before tax in Affluent rose to £169 million (2024: £148 million), while High Net Worth was broadly flat at £47 million (2024: £48 million). Head Office posted a £9 million loss. Fee income and other service income at group level grew to £733 million (2024: £544 million), reflecting broader platform and advice activity through the year.
Costs, programmes and provisions
Quilter completed its £50 million annualised cost-savings target from Business Simplification, though it still booked £31 million of transformation costs in 2025 and flags modest costs into 2026 to finish the Advice and Wealth Transformation work.
The customer remediation exercise provision fell to £42 million (from £76 million). That produced a £20 million credit in adjusting items as assumptions were updated and interest on redress aligned to the latest Financial Ombudsman Service policy. £14 million of administrative costs were incurred in the year, but no customer redress was paid in 2025; activity focused on methodology and higher-risk cohorts. Management expects redress to run over an 18-month period to 30 June 2027, with £31 million estimated to be paid within a year. The range of outcomes around response rates, evidence of servicing and admin costs remains a live uncertainty.
Dividend, buyback and balance sheet strength
The board proposed a 4.3p final dividend (£58 million), subject to AGM approval. In addition, a share buyback of up to £100 million has been approved, expected to complete by end-2026, and already cleared by relevant regulators. Management is clear this will trim IFRS net assets and the regulatory Solvency II surplus by £100 million, but the starting point is healthy: a £876 million surplus and 204% coverage ratio after allowing for the dividend.
Leverage is conservative. Total borrowings and lease liabilities are £271 million, including a Tier 2 bond of about £199 million, with company-level net external borrowings of £81 million versus total Group equity (including the Tier 2 bond) of £1,665 million. The revolving credit facility of £125 million was extended to January 2031 and remains undrawn.
Cash, flows and assets
Cash and cash equivalents stood at £2,152 million (2024: £1,949 million). Note that IFRS operating cash flows of £6,196 million include policyholder activity, so they are not a proxy for free cash. On the balance sheet, financial investments rose to £73,362 million (2024: £59,360 million) and investment contract liabilities to £64,493 million (2024: £51,758 million) as markets and flows moved higher.
Acquisitions and after-period developments
- MediFintech Ltd acquired for £5 million (1 April 2025).
- 30% of Digby Associates Limited acquired for £3 million (3 April 2025), with an option to buy the remainder in 2027 subject to conditions.
- Post year-end: ILTB Limited (trading as GillenMarkets) acquired for €16 million (£14 million) with €8 million upfront and the rest deferred.
The strategic theme is clear: augment advice capability and technology while deepening routes to affluent and high net worth clients.
Quick jargon buster
- Adjusted profit: Quilter’s preferred measure that strips out one-off or non-operating items (like transformation costs, acquisition amortisation, remediation movements and finance costs on subordinated debt) to show underlying performance.
- Policyholder tax: Tax on returns within certain products that customers ultimately bear, but which flows through Quilter’s P&L. Changes to unit pricing in 2024 reduced timing mismatches and volatility.
- Solvency II coverage ratio: Regulatory capital headroom. 204% means own funds are just over double the required capital.
My take: why this matters
This is a clean return to profitability with steady underlying momentum. Adjusted net revenue rose, Affluent delivered good progress, and the policyholder tax “noise” has calmed down. The dividend plus a £100 million buyback underscores capital strength, even after a modest dip in the coverage ratio to 204% as the SCR increased.
On the flipside, High Net Worth profits were flat, underlying operating expenses ticked up to £494 million, and interest income tailwinds eased a touch versus 2024. The customer remediation exercise is better quantified, but it is not done – cash outflows ramp up through 2026-2027 and outcomes remain sensitive to response rates and case findings.
What to watch next
- Execution of the buyback and dividend progression through 2026.
- Operating margin trajectory as savings bed in versus investment in Advice and Wealth Transformation.
- Remediation progress – quantum of actual redress paid, recoveries from Appointed Representative firms, and provision updates.
- Interest income on cash balances as the rate backdrop evolves.
- Integration benefits from MediFintech and ILTB (GillenMarkets) and any further bolt-ons.
Bottom line
Quilter has put a difficult 2024 behind it with a solid, broad-based 2025. The mix of improving adjusted profits, firm capital, and tangible cash returns to shareholders is the right one. Keep an eye on remediation delivery and cost discipline, but today’s package looks supportive for sentiment and, if markets behave, for earnings progression into 2026.
