Standard Life Announce Profits Surge

Wed, 12 Mar 2008

Standard Life has today revealed bumper annual profits for its first full year as a public company .

Britain's fifth-largest life insurer beat forecasts with a 43 per cent rise in operating profits and surpassed its own key efficiency target, despite taking a £249 million hit as more customers cashed in their policies early.

The news will provide a much needed boost to the City and the thousands of small investors who hold two-thirds of the company’s shares, which have jumped more than 13 per cent to 246p in the wake of the surprise figures.

However, analysts and investors said the strong performance did not mean worries over broader strategic issues had been fully resolved.

The Edinburgh-based company reported its results for 2007 which saw pre-tax profit rise to £714, up £174m from 2006, while adding that contribution from new business jumped 68 per cent to £345m.

Standard Life said its embedded value figure - a closely watched industry measure of expected future profits - increased by 11.5 per cent to £881m - well above analyst expectations ranging from £579m to £752m.

The firm’s chief executive Sandy Crombie said the figures represented a "very strong set of results" for the firm's first full-year as a public company .

Last year Standard Life failed in an attempt to buy fellow insurer Resolution, eventually losing out to rival Pearl Assurance, which added to the firm’s concerns over losing UK boss Trevor Matthews to Friends Provident and disappointing end of year sales figures.
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