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Daily Insurance Industry News
Thursday 15th of November 2018
March 12, 2008

Standard Life posts 43% profit rise

by Gill Montia

Story link: Standard Life posts 43% profit rise

Standard Life posts 43% profit rise

Standard Life surprised analysts by recording a 43% rise in operating profit in 2007.

The insurer secured new business in high margin products while at the same time lowering costs.

Underlying pre-tax profit rose 32%, to £714 million, despite investors withdrawing £249 million from policies that had not reached their maturity dates.

In reporting the results, Standard Life was also able to assure investors that it held no direct exposures to the US mortgage market.

The company’s exposure in other areas, such as monoline insurers and credit guaranteed by monoline, remains modest.

Sandy Crombie, Standard Life’s chief executive, said: “We have beaten all our profitability and efficiency targets for 2007 and achieved record sales, a platform which we will build upon for further growth in years to come. Against an uncertain economic backdrop we have made a good start to 2008 and are working to improve our core profitability.”

The results are a personal triumph for Mr Crombie, whose position was in jeopardy last year following the collapse of the insurer’s bid for Resolution, the closed life funds consolidator.

 

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