Standard Life upbeat after strong year

Standard Life continued to deliver strong sales figures today, despite increased competition in the market for one of its key products.

The insurer, which listed on the stock market in July, said a push by a number of its rivals into the area of self-invested personal pensions (SIPPs) had failed to dent its own performance.

Announcing new business figures for 2006, Standard said UK life and pension sales were up 54% to £1.44bn (€2.18bn) – just ahead of the mid-point of the range forecast by analysts beforehand. The figure, based on the standard industry measure of all regular premium sales and 10% of single premiums, was boosted by a strong final quarter when sales increased 86% to £431m (€654m).

Across the group, Standard worldwide sales were up 39% to £1.73bn (€2.62bn).

In common with other insurers, Standard said the A-Day changes to pension rules in April were continuing to have a positive effect on business.

Chief executive Sandy Crombie said: “We have seen particularly strong life and pensions sales in the UK in 2006, driven by single premium business such as SIPPs and investment bonds. External factors such as A-Day have clearly had a positive influence on our sales performance.”

Standard said SIPPs assets under management increased £4.3bn (€6.52bn) at December 31, from £1.3bn (€1.97bn) a year earlier. Despite several competitor launches, Standard said it “continued to lead this market in both volume and service”.