Standard Life beats City expectations

by Gill Montia

Story link: Standard Life beats City expectations

Standard Life, the UK’s fifth largest insurer, recorded a 31% increase in profit in the first-half of 2007; a result well above analysts’ expectations.

Worldwide life and pensions sales for the period amounted to almost £8.2 billion. UK life and pensions sales increase 45%, to £6.95 billion, over the six month period, with a boom in the sales of self-invested personal pensions (SIPPs).

The company sees the individual sale of SIPPs as a cornerstone for the growth of its UK business and sales, at £2.5 billion, were 82% higher during the first-half of this year, when compared with the same period of 2006.

Group pension sales increased 49% during the period, to almost £1.5 billion, having also benefited from the pension reforms introduced last year.

Standard Life’s investment management division increased its funds under management by just over £5 billion (net) in the six months to the end of June, bringing its total managed assets to £140.6 billion.

The results have added heat to rumours that Standard Life may disrupt the proposed £8.6 billion merger between Resolution and Friends Provident.

Standard Life has held talks with both companies in the past and is reported to be considering Resolution as a potential partner.