Rising pension sales help drive business at Standard Life

Funds under management at Standard Life Ireland grew by 8.8 per cent to €7.4 billion in the six months to June 30th, as the Scottish life assurer benefited from rising pension and investment bond sales.

The company’s Irish business saw substantial growth in assets over the first half of 2014, due to a combination of strong underlying investment growth and increased sales. Over the six month period, total assets grew from € 6.8 billion to in excess of € 7.4 billion, while personal pension sales increased by 59 per cent with investment bond sales up 26 per cent.

"Increased consumer confidence helps explain a 59 per cent increase in sales of personal pensions. Consumers find it easier to plan for the future when they have more financial confidence," said Brendan Barr, head of marketing at Standard Life Ireland.

The Scottish life assurer today reported a 12 per cent jump in first-half group operating profit, up to £339 million, as it increased its interim dividend by 7.3 per cent to 5.60 pence a share.

The insurer said it was benefiting from the British government’s decision last year to automatically enrol workers in company pension schemes, adding that it expected over 300,000 new auto-enrolled customers in 2014.

The company also reiterated concerns that a vote next month for Scotland’s independence could create economic and financial risks and said it was sticking to plans to move operations out if necessary.

"In making our comments, we were not seeking to make a political comment. It was very much round about how we think about factors that impact our business," chief executive David Nish said.

(Additional reporting Reuters)