Standard Life profit up 51 pct

Font Size

Print

Feedback

Email

Discuss

Related Articles

Citigroup shares drop to 13-year lowCitigroup liquidates its CSO fund: ReportHP sees stronger-than-expected 2009GE Capital plans to cut costs by $2 bn in 2009

Standard Life posted a 51 per cent rise in first-half profit on Wednesday, boosted by one-off gains from a deal to reinsure annuity liabilities and reduce the financial risk posed by Britons living longer.

The British life insurer also said that, despite difficult market conditions, the outlook for its net flows, sales and profitability remained positive.

The firm, one of the most exposed insurers to UK wealth management which has been hit by a downturn in consumer sentiment, said operating profit, on an embedded value basis, totalled 534 million pounds ($1 billion) in the six months.

Eight analysts polled by Reuters had forecast operating profit of 525 million pounds, with estimates ranging from 514 million to 595 million pounds.

The former mutual insurer said it would pay an interim dividend of 4.07 pence a share, up 7 per cent on the year.

Standard Life, previously the UK insurer with the largest exposure to longevity risk, said in February it had signed a deal with Canada Life, a unit of Great-West Lifeco to reinsure 6.7 billion pounds of its annuity liabilities.

Life and pension sales on a present value of new business premiums (PVNBP) basis rose 5 per cent to 9.1 billion pounds and its new business contribution rose 4 per cent to 157 million.