INSURANCE group Standard Life reported a drop in third quarter UK sales today but said recent improvements in stock market prices had helped to increase asset values.
• Standard Life saw pension and life insurance sales fall in the third quarter of 2009The life and pensions group, which h
as its headquarters in Edinburgh, revealed UK business for the year to date was down 23 per cent at £7.26 billion. Worldwide sales were down 15 per cent.
Standard Life announced the sale of its banking business to Barclays earlier this week and said the performance had been affected by a decision to scale back on bulk deals.
However, the recent rebound in equity prices has boosted the value of its assets under management and net inflows.
At its fund management arm, Standard Life Investments, total assets under management leapt £15.3 billion to £136.9 billion during the third quarter, thanks to a record rise in third party assets.
Pension funds also recovered, with its DIY-style self-invested personal pensions assets up by £1.3 billion to £11 billion and group pension assets rising 16% to £17.1 billion since June.
And the group's capital buffer – a regulatory requirement for balance sheet strength – rose again to £3.4 billion.
Chief executive Sir Sandy Crombie said he was "particularly pleased" with the bounce back in assets under management.
"This should benefit the group's profits and cashflow in the years to come," he added.
Sir Sandy confirmed his end of year departure date last week after naming finance director David Nish as his successor.
He will stand down after 43 years with the insurer and five years at the helm, but remain with the business until the end of April 2010 to ensure a smooth transition.
