Standard Life on course for LSE listing

Europe’s largest mutual assurer Standard Life said today it had continued to make progress in re-positioning its business as it prepares for a FTSE listing next year.

Standard, which is now more focused on markets offering greater profitability and long-term growth, said sales of life and pensions products in the UK rose 10% to £459m (€675.4m) in the six months to June 30.

Chairman Brian Stewart described the first-half performance as “robust” and said it had been line with the company’s expectations.

Edinburgh-based Standard is expected to demutualise next summer in a move that should net windfalls for about 2.6 million policyholders.

Ahead of the float, the company – founded in 1821 – has cut more than 2,000 jobs and axed its direct sales force as it looks to boost profitability.

It has also backed products such as the Self Invested Personal Pension (SIPP), which allows policyholders to make their own investment decisions.

Standard said it had a market-leading position in SIPP with half-year sales of £60m (€88.3m), a fourfold increase on the comparable period a year earlier.

Changes in the regulations affecting the distribution of long-term savings products are also reflected in the half-year results today.

Standard generates around 85% of new business through financial advisers, but said today it had also forged distribution alliances with a number of other financial firms, including Barclays and National Australia Bank.

Across the group, worldwide sales increased by 4% to £619m (€910.9m), while the amount under management at the group’s investment arm topped £100 billion for the first time – at £106bn (€156bn), compared with £96bn (€141bn) last time.

Standard said the division was now the fastest-growing top 20 pension fund manager in the UK.

At Standard Life Bank, gross lending of £1.4bn (€2bn) was down from £2.1bn (€3bn) as a result of the slowdown in the housing market. But overall business quality remained high with the level of mortgages three or more months in arrears below the industry average at 0.18%.