Standard Life’s Irish sales rise 17%

Standard Life’s Irish operations have increased sales 17% to €1.76bn — €744m of which was sold directly in the Irish market.

Standard Life International’s business in Ireland, selling mostly into Britain, saw its revenues jump 26% to €1.019bn while sales completed by Standard Life Ireland increased by a more modest 7% €744m.

Country head of Standard Life Ireland Nigel Dunne said their international footprint gives them real competitive advantage in Ireland and puts them in a strong place relative to many of their competitors.

Standard Life sales of single premium pension products such as buy-out bonds increased by 35% and personal pensions/PRSAs (28%) performed particularly robustly. However, sales of single premium investment bonds decreased by 26%.

“Many investors may have chosen to keep their funds in short term deposit accounts or decided to pay down their debts instead,” Mr Dunne said.

Globally Standard Life reported a better-than-expected 28% rise in 2011 profit, helped by cost-cutting measures and a strong showing at its Canadian unit.

Edinburgh-based Standard Life, Britain’s fifth-biggest insurer, made a pre-tax operating profit of £544m (€654.7m) last year, it said yesterday, ahead of the £476m expected by analysts in a company poll.

The improvement was driven in part by £45m in cost-cutting measures, as well as a 70% increase in profit at Standard Life’s Canadian division.

Standard Life, which has been investing heavily on new products and technology, also cut total investment spending to £137m from £149m in 2010.

“Today’s results again demonstrate that we are well on track to transform the operational and financial performance of Standard Life,” chief executive David Nish said in a statement.

Standard Life is paying a total dividend for the year of 13.8p, an increase of 6.2%, and ahead of the 13.65p pencilled in by analysts.

Standard Life shares closed at 237.6p on Monday, valuing the company at about £5.5bn.

The stock is up 15.6% since the start of the year, outperforming a 13% rise for the Stoxx 600 European insurance shares index.