Scottish Life saw sales rise 26% year-on-year to £1.5 billion in the first half of 2013, helping the group to withstand a tough protection market and post a 19% rise in underlying operating profit to £113 million.
Mr Loney, former managing director of Scottish Widows, said there had been "a real pick-up in momentum" at Scottish Life since the start of the year, when new rules barring product providers paying sales commission to financial advisers kicked in.
"What is happening now that commission is out of the market is that the quality of your proposition is what matters," he said.
"Intermediaries want good service for customers and themselves, not least because bad service hurts them and they are working on tougher margins now."
Scottish Life, which has long eschewed commission payments, is picking up business from rivals even as markets, such as personal pensions, have shrunk.
But Mr Loney is concerned many investors outside the top wealth brackets have no access to advice as banks have slashed adviser numbers due to increased qualification requirements.
"There has been a huge reduction in bank employees who are financial advisers," he said.
"There is now this huge gap in the mass market who are not the typical target of independent financial advisers."
He added: "We would like to see that revisited."
Recent data from the Financial Conduct Authority showed a short-term pick-up in the numbers of independent advisers but Mr Loney believes that the long-term trend in this part of the advice sector too is likely to be down.
Mr Loney wants action to spark competition in the corporate pensions market, where the roll-out of auto-enrolment is expected to bring much more money into the industry.
He fears that changes, such as the removal of consultancy charging, which allows employers to pay an adviser out of employee pension contributions, makes it hard for challengers to take on the established providers.
The issue is currently being considered by the Office of Fair Trading, with its report due out next month.
Mr Loney said: "The market needs freeing up to be much more competitive so that schemes continue to switch so that value on the scale of the group pensions market goes to customers rather than shareholders."
He added: "The level of political belief in the importance of advisers is disappointing and is something we are working very hard to change."
Mr Loney denied that Royal London, which has 1200 employees and 270 outsourced workers in Scotland, had been affected by doubts about the mutual model after Co-operative Group announced a restructuring to fill a capital hole at its banking business.
"People are buying Royal London's brand of mutuality rather than mutuality in general," he said.
Royal London completed the acquisition of Co-operative's life assurance arm at the end of July, bringing in £20 billion more in assets.
It also bought Royal Liver two years ago but Mr Loney signalled that he is not finished doing deals.
He said: "We are interested in buying other books of with-profits business.
"We are very good at running with-profits business at low cost, both in terms of the servicing of policies and the asset management.
"We have got a strong fund that can support other funds."