Profits boost for pension firm Standard Life

Aug 7 2008 Daily Record

PENSIONS giants Standard Life yesterday said half-year profits rose 51 per cent against a backdrop of continuing economic uncertainty.

The improvement to £534million came after worldwide life and pensions new business sales rose to £9.1billion in the first six months of the year, with the figure in the UK "constant" at £7.2billion. New business profits generated in the UK rose four per cent to £138million, the Edinburgh firm added.

Sales saw the impact of the change in pension rules in 2006 begin to drop out, with the spike in sales seen after "A-Day" now on the wane.

First-half individual sales of self invested personal pensions (SIPPs) were down 19 per cent to £2.1billion. But the company stuck by their expectation that the UK SIPPs market will double in size to £100billion of assets by 2011.

Group pension sales of £1.8billion increased by 17 per cent on the previous year, reflecting a shift towards group personal pension schemes.

Standard Life added that sales across their savings and investments portfolio increased by 19 per cent to £1.6billion. In mortgages, Standard said their book stood at £10.6billion at the end of June, a fall of £700million on December but with a low arrears rate of 0.24 per cent.

Chief executive Sandy Crombie described the first-half trading as "successful" and said a seven per cent increase in their dividend reflected "our confidence about the future".