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Daily Insurance Industry News
Thursday 21st of June 2018
August 6, 2008

Standard Life reports 51% profit increase

by Gill Montia

Story link: Standard Life reports 51% profit increase

Standard Life has reported a 51% rise in first-half operating pre-tax profit and says that the outlook for its net flows, sales and profitability remain positive, despite difficult market conditions.

Under European Embedded Value rules, profit rose to ££534 million, ahead of most analyst predictions.

Life and pension sales on a present value of new business premiums basis rose 5% to £9.1 billon, while the new business contribution rose 4%, to £157 million.

The insurer said reduced market values were depressing income transfers to self-invested personal pensions and group schemes, and that it will be making changes to its SIPP offering in the second half of the year.

Gross mortgage lending was down by 54%, to £728 million and net outflows from Standard Life’s mortgage business totalled £0.7 billion.

The company has a high exposure to customers’ increased longevity and took a £100 million charge from changes to mortality assumptions.

However, in February it finalised an agreement with Canada Life to reinsure £6.7 billion of its annuity liabilities.

The insurer is paying an interim dividend of 4.07 pence a share, up 7% on last year.

 

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