Standard Life signals uk promise

Life and pensions group Standard Life posted a better-than-expected 28 per cent rise in full-year profits to £544 million following cost cuts and a much-stronger performance from the Edinburgh-based firm’s Canadian operations.
By GRAEME EVANS
Published 13th Mar 2012, 09:31 BST

UK profits dropped by 6% last year though as economic uncertainty and volatility returned to hit confidence.

Chief executive David Nish said the results showed the company remained on track to transform its “operational and financial performance”, including by focusing on those markets where it has leading positions.

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For 2011, assets under administration in the UK were 2 per cent higher at £122 billion but net inflows of £2.12bn were down 29 per cent on a year earlier. It has more than six million customers and is one of the UK’s biggest corporate pensions providers with a market share of more than 19 per cent.

In the UK, the company said it was entering a period of unprecedented change and potential for growth.

The company is being helped by lower commission costs as more IFAs switch to fee-charging ahead of the forthcoming overhaul of retail distribution rules.

It is focused on working with IFAs who are best placed to prosper in the new market environment, allowing it to grow its intermediary market share without incurring the cost of commission on new business.

Shares were 2 per cent higher today despite the company warning that trading conditions remained tough.

It added: “The uncertain economic backdrop and its effect on consumer confidence have impacted new business volumes since the start of the year against a strong start to last year.

“However, we see significant opportunities in all of our chosen markets.”

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