Life and pensions giant Standard Life today unveiled a 7 per cent drop in third-quarter new business but said it was well placed to cope with the changing regulatory landscape and deliver improved returns for shareholders.
The Edinburgh-based group reported new business sales of £14.4 billion for the nine months to 30 September, down from £15.5bn at the start of the year, although the decrease was in line with analysts’ forecasts.
Assets under management rose to £211.9bn, from £198.4bn previously, largely thanks to positive market movements, and chief executive David Nish said the group was ready to take advantage of regulatory changes such as the introduction of compulsory pension provision for employees and the banning of commission payments to financial advisers.
He added: “Standard Life has performed well in the first nine months of the year, continuing to grow our assets despite the uncertain economic environment.”
Investec analyst Kevin Ryan said today’s new business numbers “look reasonable” given the headwinds of recession and upcoming regulatory changes, but said a 12 per cent decline in UK sales to £9.7bn was worse than forecast.
However, we said there were “plenty of reasons” to remain positive about the firm’s shares, which have risen strongly this year, as it is one of insurers best prepared for the retail distribution review, which will end commission payments to advisers next year, because it stopped paying commission when it floated in 2006.