Standard Life bounces back

by Gill Montia

Story link: Standard Life bounces back

Standard Life is expected to record first-half profits of £350m this week.

The forecast is well ahead of earlier market expectations of £327m and compares with profit of £206m in the first half of 2005/06.

In the past six months the company’s investment management activities have produced a strong performance and sales of self-invested personal pensions (Sipps) have increased.

The results are expected to illustrate the success of Standard Life’s decision to restructure its business away from tradition life and pension products and focus on investment management and Sipps.

The company is continuing with its restructuring plans, which are scheduled for completion in 2009, and will create cost savings of around £100m.

The changes will also enable Standard Life to cross-sell financial products, and to this end there are plans to combine its health insurance, life and pensions and banking divisions into one unit.

In recent weeks rumours have linked Standard Life with a possible takeover of Resolution Life but market analysts now consider that the company will opt for organic growth.

Finally, Standard Life has agreed to sell a 40% share in its £3.4 billion buyout subsidiary, to nine of its private equity managers.